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ARDL and the Levels Equation

Posted: Fri May 10, 2019 11:36 am
by Nas1
Hello, i have a confusion when it comes to ARDL estimation output.

In the estimation output, there is the level equation estimation. However, by default, variables used in the ARDL estimation are integrated of order 1 or 0. Does this indicate that the level equation may produce a spurious regression?

Another point. the results of the bounds test and the ecm term indicate for the long run relation between the dependent and the independent variables. however, in the level equation, no individual independent variable have a statistically significant coefficient.