Interpreting VEC output
Posted: Mon Aug 30, 2010 8:07 am
Hi,
I have tested for a cointegrating relationship and one exists, so I've estimated a VECM with four endogenous variables, and no exogenous variables. There are enough observations. I'm just wondering how exactly to rewrite the EViews output into equations, in particular the first equation as it is the modelling of consumption that I am most interested in.
So what I want to know is: how do I rewrite the output (see attached Word file) and what is the best approach in interpreting the results for consumption modelling?
EDIT: There are two lags on each variable, I've just not included all of the EViews output in the Word file. I just need the general jist to form all of the equations.
Thank you.
I have tested for a cointegrating relationship and one exists, so I've estimated a VECM with four endogenous variables, and no exogenous variables. There are enough observations. I'm just wondering how exactly to rewrite the EViews output into equations, in particular the first equation as it is the modelling of consumption that I am most interested in.
So what I want to know is: how do I rewrite the output (see attached Word file) and what is the best approach in interpreting the results for consumption modelling?
EDIT: There are two lags on each variable, I've just not included all of the EViews output in the Word file. I just need the general jist to form all of the equations.
Thank you.