Inverse Roots of AR Characteristic Polynomial
Posted: Wed Jun 04, 2014 11:23 pm
hello,
I want to ask something about Inverse Roots of AR Characteristic Polynomial in the context of VECM. I know that all the dots should have been inside the circle on inverse roots graph in order to say that impulse responses are good. however in my example lets say : 50 dots are inside the circle and 1 dot is touching the circle in the positive x axis. is this good? how is interpreted?
thanks in advance
I want to ask something about Inverse Roots of AR Characteristic Polynomial in the context of VECM. I know that all the dots should have been inside the circle on inverse roots graph in order to say that impulse responses are good. however in my example lets say : 50 dots are inside the circle and 1 dot is touching the circle in the positive x axis. is this good? how is interpreted?
thanks in advance