Hello eveybody,
I am not an expert in eviews and some of my econometric ideas may be limited.
However, I am trying to estimate a VECM that follows a given economic theory, (namely an import demand function). In order to analyze the model I have to put some restrictions to it.
I understand that one can put restrictions like B(1,1)=0, B(1,2)=1,B(1,3)=-1
But is it possible to place a restriction like B(1,4)<0, so it has a negative sing?
Thanks in advance.
Sing restriction in VECM
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