Interpreting VEC output

[coconutter]

Hi,

I have tested for a cointegrating relationship and one exists, so I've estimated a VECM with four endogenous variables, and no exogenous variables. There are enough observations. I'm just wondering how exactly to rewrite the EViews output into equations, in particular the first equation as it is the modelling of consumption that I am most interested in.

So what I want to know is: how do I rewrite the output (see attached Word file) and what is the best approach in interpreting the results for consumption modelling?

EDIT: There are two lags on each variable, I've just not included all of the EViews output in the Word file. I just need the general jist to form all of the equations.

Thank you.

[wahab907]

by looking at your results it seem that no short run relationship exits between the variables except D(Consupt) and D(consumpt(-2)) and D(realant(-2)) & D(disposy). In order to write your results you need to look at peered review papers and write your results in scientific way.

Thanks
Wahab
wahab.907@gmail.com

[fmgoto]

Just checking, but the first part of a VEC output displays the actual "beta's" and not "-beta's", correct?

Coconutter may have been refering to if one can translate Eviews output to

Code: Select all

1 - 40504*REALINT +89.69*DISPOSY - 1.08*HOUSE


or

Code: Select all

1 + 40504*REALINT -89.69*DISPOSY + 1.08*HOUSE


I would appreciate if anyone could clear this out, for I could not find the spec in the Command Reference (though I must confess I haven't looked up that hard... sorry!).

Thank You, Fabio