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Joint Null Testing & Johansen

Posted: Sat Aug 29, 2009 4:51 pm
by theblackcat
Hi everyone,

Another newbie here, I was wondering if anyone could help me with a joint null hypothesis test within the Johansen framework. The spot vs. futures regression I wanted to estimate was:

s = a + bf + e.

I did the VAR, but I’m not sure how I should impose restrictions to come up with a joint test of a = 0 & b = 1. Any help will be much appreciated.

Thank you!