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Dear all,

I have a question regarding the ARDL model. I am estimating the ARDL with the unrestricted constant and unrestricted trend, I could only find the short-run constant term, but couldn't find the long-run constant term (Please kindly check the attachment file for my long-run estimation). I am new to using Eviews and haven't been able to find any related problem online. Hope anyone of you could answer my question. Thank you.

Hi!

The reason that you don't see the constant or trend terms in the long-run levels equation is due to the fact that you are estimating ARDL using the deterministic scheme 5 which does not subject the constant and the trend to the long-run restriction. In other words, the constant and trend are NOT part of the long-run or cointegrating equation. They are however treated as short-term variables and are therefore treated as such in the numerous other auxiliary regressions presented in the ARDL output.

For further details, I would suggest you read our 3-part ARDL blog, but if you need a quick summary, refer to the last section in Part 1. The link is provided here: http://blog.eviews.com/2017/04/autoregr ... -ardl.html