We apply the idea of using reversed time series to improve the power of Johansen tests. We suggest computationally simple variants of the trace and maximum eigenvalue statistics and establish their limit distributions. Both are shown, via simulation, to yield nontrivial power gains.

The existence of good schools is expected to increase nearby housing prices. We use a natural experiment from two cities in Korea where the high school entrance system changed from self-selection to geographical assignment. Our empirical results show that the existence of good high schools did...