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Hello,

I have the following money demand model as a VAr
cash_SA gdp_SA savings_rate ATM_growth

When I run the VEC, I get these results. However, shouldn´t all this coefficientes be negative in order to intepret them as error correction terms?

CointEq1 -0.011958 0.000962 -3.02E-06 2.99E-06
(0.00605) (0.01392) (1.7E-06) (4.0E-07)
[-1.97788] [ 0.06914] [-1.79023] [ 7.44804]

Hello,

I have the following money demand model as a VAr
cash_SA gdp_SA savings_rate ATM_growth

When I run the VEC, I get these results. However, shouldn´t all this coefficientes be negative in order to intepret them as error correction terms?

CointEq1 -0.011958 0.000962 -3.02E-06 2.99E-06
(0.00605) (0.01392) (1.7E-06) (4.0E-07)
[-1.97788] [ 0.06914] [-1.79023] [ 7.44804]

no, they do not. some variables can be above their long term level in the short run, and some below