Examine the short-run and long-run causal
relationships between macro variables and stock market price.
For a country of your choice, download enough data (get the maximum number
of observations) on the following variables: stock market index, interest rate,
money supply (M2), and employment. Use this data to study the relationships
between stock market index, interest rate, money supply (M2), and employment. To
do so, you need to answer the following questions:

(i)Compute and discuss the descriptive statistics of your time series (in levels
and logs). Plot the series and describe patterns.
(ii)Report and comment on the ACF/PACF functions of stock market index,
interest rate, money supply (M2), and employment and their first-differences in log.
(iii)Use appropriate Dickey–Fuller tests to test if the variables stock market
index, interest rate, money supply (M2), and employment and their first-differences in log
are non- stationary (have a unit root) or not. Explain the test procedure, report the test
statistics and the appropriate critical values (at 5% significance level) and discuss the
(iv) Test for cointegration among the four variables using Johansen’s tests.
Explain the test procedures, report the test statistics and the appropriate critical values (at
5% significance level). How many macro variables are cointegrated with stock market
price? Discuss the results.
(v)If you have found one or more cointegrating relations, estimate the longrun
causal relationships (i.e., the cointegrating relations) and the Vector Error Correction
Model. Otherwise, use the Box-Jenkins procedure to estimate a VAR model for the
appropriately transformed (de-trended or differenced) variables. Report the results of
Granger causality and the impulse response functions. What are the macro variables that
affect stock market price? Discuss the results.
(vi) Find three published papers on the relationship between stock market
price and macro variables and discuss/compare your results to those obtained in these

Use of Arial font size 11 for this assignment.
Overall word limit, 2500 words maximum.
The word count should:
• Include all the text, including title, preface, introduction, in-text citations,
quotations, footnotes and any other item not specifically excluded below.
• Include all the references at the end of the text (The reference do not count on
the overall word limit)
• Exclude diagrams, tables (including tables/lists of contents and figures),
equations, executive summary/abstract, acknowledgements, declaration and

Sample Solution

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.

God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.



Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.