Time trend in VECM trouble
Posted: Fri Aug 22, 2014 2:47 pm
Hello,
I am just trying to run a time trend in a VECM. I have included a time trend in the form 1,2,3,4,5 etc. up to my total number of observation, but I have got the reply near singular matrix.
then I tried 0+1, 0+2, 0+3 ect. again up to my total obs, however the reply I get is alpha series in specification - TT.
So I am just wondering what is the correct way to run a time trend in a VECM.
Many thanks.
I am just trying to run a time trend in a VECM. I have included a time trend in the form 1,2,3,4,5 etc. up to my total number of observation, but I have got the reply near singular matrix.
then I tried 0+1, 0+2, 0+3 ect. again up to my total obs, however the reply I get is alpha series in specification - TT.
So I am just wondering what is the correct way to run a time trend in a VECM.
Many thanks.