How to interpret the coefficients in a VECM
Posted: Tue Jul 20, 2010 12:06 pm
Hello,
I´m running a VECM with one cointegration relation. I can interpret the cointegration relation but my tutor also wants me to interpret the coeffficients (algebraic signs and absolute values). But as far as I know that is not possible - am I right? I hope anyone can help, it´s urgent... Thanks a lot!!!!
I´m running a VECM with one cointegration relation. I can interpret the cointegration relation but my tutor also wants me to interpret the coeffficients (algebraic signs and absolute values). But as far as I know that is not possible - am I right? I hope anyone can help, it´s urgent... Thanks a lot!!!!