Hi, I have 3 independent and 1 dependent variable. All variables are I(1), so I have to look into cointegration relations.
After I put all varibles I(0) forms into the eviews' system and run the Johansen cointegration test, I found that there is one cointegration relation according to max-eigen stat and 3 cointegration relationships according to trace stat. So according to Soren Johansen, I have to look into cointegration relationship graphs.
All 3 cointegration graphs seems non-stationary. But at least there should be one cointegration relationship according to Johansen cointegration analysis.
My question ,is this normal, how can I interprete this situation and İf i am doing wrong how can i fix it?
Cointegration graphs interpretation problem
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economist79
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