COMMAND OF INTERACTION VARIABLE

[lnp3]

dear forum,

I am doing a panel co-integration study in Eviews 8.

All 3 variables were made stationary at first difference level.

how can I enter the command for interaction variable in co-integrating estimation box? separately or in one parenthesis?

dependent variable followed by a list of regressors:

d(oprof) d(ms)*d(dcp)

OR

d(oprof) d(ms*dcp)

PLEASE HELP. Thanks a lot.

lnp3.

[trubador]

The first specification will measure the impact of an interaction among the changes in variables. The second one, however, will measure the impact of a change in the interaction between the levels of variables. So, you'll have to decide which one is appropriate.

[lnp3]

thanks for the feedback.