How does eviews estimate the coefficients of the CE

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Chrispap
Posts: 1
Joined: Tue Nov 03, 2009 9:08 pm

How does eviews estimate the coefficients of the CE

Postby Chrispap » Tue Nov 03, 2009 9:18 pm

Dear eviews users,

I am having this question, how does eviews estimate the coefficients of the cointegrating equation (CE)e.g. when the CE has a constant?

I would be grateful if someone could provide a brief description of the procedure followed to obtain these coefficients (I am referring to the maths and calculations behind their estimation and not the procedure followed by the eviews users to obtain them)

Additionally, I would like to ask, shouldn't these coefficients be vectors of coefficients? why are they single numbers?

I am thanking you in advance,

Best Regards,

Chris

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