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Lag Selection and Johansen Cointegration Test

Posted: Sun Jan 29, 2017 7:39 pm
by Syairie
Hello all. i have annual data from 1980 to 2015 which means 36 observation.
i already run the lag selection criteria and it show the appropriate lag is 5, but when i try to run the Johansen Cointegration Test with lag 5 it show Near Singular Matrix. anyone can help me with this?

Thank You in Advance

Re: Lag Selection and Johansen Cointegration Test

Posted: Thu Feb 02, 2017 6:15 am
by KrilleJ
Perhaps you have too many variables so that you loose all you DoFs?