VAR/Johansen

[haraldweber]

Hello everybody,
I have got a question regarding the Johansen test for cointegration in Eviews. If the Johansen test is performed using five variables, according to the output obtained, the following number of cointegration relationships is possible: none, at most 1, at most 2, at most 3, at most 4. If there is an asterisk (*) behind any of those options (none*, at most 1*, at most 2*, at most 3*, at most 4*) there is the following text below this listing: “Trace/Max-eigenvalue test indicates 5 cointegrating eqn(s) at the 0.05 level.”
Now my question is: In case of five variables, can there be ‘at most’ 4 or 5 cointegration equations?
The reason behind this question is the following: If I try to estimate a VEC model with 5 research variables in Eviews and enter ‘cointegrating rank 5’ in the cointegration section, I get the following error message: “Invalid specification of number of cointegrating equations.”
Maybe someone can help me with that issue. Thank you very much in advance!
Kind regards

[Malvery]

Hello,

Did you ever solve this?