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- Tue May 17, 2011 4:14 pm
- Forum: Econometric Discussions
- Topic: Johansen’s Cointegration Test: cointegrating equation
- Replies: 2
- Views: 6476
Re: Johansen’s Cointegration Test: cointegrating equation
Yes, this is true. When you get the same number of cointegrating equations as there are variables, it implies that none of the variables contain stochastic trends, which may simply be taken as saying that al the variables are actually stationary and where all the varianles are stationary, you cannot...