I estimated a Grouped Panel DOLS and FMOLS equations and I planned to take the residuals to estimate Mean Group Panel VECMs. However, I noticed that the residual errors in each group are not centered to 0. Some of them are 16. something, some -4. anything else and this happens for vast majority of the 48 countries in my panel. Why does this happen? Given all this, it is a good idea to estimate the Panel VECMs that I planned to?
For technical questions regarding estimation of single equations, systems, VARs, Factor analysis and State Space Models in EViews. General econometric questions and advice should go in the Econometric Discussions forum.
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