Sing restiction in VECM

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Manuel Rodriguez
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Joined: Tue Nov 08, 2016 4:25 am

Sing restiction in VECM

Postby Manuel Rodriguez » Tue Feb 14, 2017 10:28 am

Hello eveybody,

I previously posted this topic on Estimation , but have realized taht maybe this discussion thread is better.
If I am wrong, sorry.

I am not an expert in eviews and some of my econometric ideas may be limited.

However, I am trying to estimate a VECM that follows a given economic theory, (namely an import demand function). In order to analyze the model I have to put some restrictions to it.

I understand that one can put restrictions like B(1,1)=0, B(1,2)=1,B(1,3)=-1

But is it possible to place a restriction like B(1,4)<0, so it has a negative sing?

Thanks in advance.

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