Hi Everybody,
I'm performing an ARDL and I made "ARDL Long Run and Bound Test" with Eviews and juste after my "Conditional Error Correction Table", I got this message for some of my variables:
Variable interpreted as : Z = Z(1) + D (Z)
So I'm not able to see the coefficient for example for Z(1) to perform a Wald test for example and D(Z) to interpret for the short run the impact on my dependent variable.
How can I do to see these different coefficient ? Or How interpret ou understand that ? No effect on the short run?
Please I need an help
Aimeric
URGENT ARDL interpretation Issue
Moderators: EViews Gareth, EViews Moderator

 Posts: 27
 Joined: Sat Apr 22, 2017 8:23 pm
Re: URGENT ARDL interpretation Issue
This just means that if your model has variables which are chosen to have zero lags, they have a special interpretation. In your particular case, for instance, the coefficient associated with INV** is 0.117421. The note basically says that:
0.117421 INV** = 0.117421 INV(1) 0.117421D(INV).
Accordingly, the coefficient estimate of INV(1) is the same as that reported for INV**. I hope that clarifies the issue.
0.117421 INV** = 0.117421 INV(1) 0.117421D(INV).
Accordingly, the coefficient estimate of INV(1) is the same as that reported for INV**. I hope that clarifies the issue.
Re: URGENT ARDL interpretation Issue
Does this mean that the coeficient of D(inv) is equal to zero?
0.117421 INV** = 0.117421 INV(1) + 0 D(INV).
0.117421 INV** = 0.117421 INV(1) + 0 D(INV).

 Posts: 27
 Joined: Sat Apr 22, 2017 8:23 pm
Re: URGENT ARDL interpretation Issue
NipNip wrote:Does this mean that the coeficient of D(inv) is equal to zero?
0.117421 INV** = 0.117421 INV(1) + 0 D(INV).
No! It means the coefficient on D(INV) is the same as for INV(1). In other words, 0.117421. I made that explicit in my previous post.
Re: URGENT ARDL interpretation Issue
I've tried to do the ECM regression in excel, but I think I'm calculating the variable "CointEq" in a wrong way. I think I cannot follow what the equations say in ARDL chapter from Eviews user guide.
Please, can you guys help me with equation used to calculate "CointEq" variable?
I'm using Case 5: Unrestricted Constant and Unrestricted Trend.
Regards,
Joel
Please, can you guys help me with equation used to calculate "CointEq" variable?
I'm using Case 5: Unrestricted Constant and Unrestricted Trend.
Regards,
Joel
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