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illegal lag or index specification for coefficient C

Posted: Thu Oct 03, 2013 8:02 am
by Chuvaekek
Hi!.

I'm new to eviews. my problem is that my equation in ADF testing in level is

d(interest)=c+trend+interest(-1)+e

whenever i enter this equation that i learned from youtube, illegal lag or index specification for coefficient c was always showed.

pls help me!.

give me alternative equation or simple equation in ADF testing in level and in 1st difference

my variables are:

Interest, inflation, forex, m2, financials, industrial and property

Re: illegal lag or index specification for coefficient C

Posted: Thu Oct 03, 2013 8:05 am
by EViews Gareth
I'm going to assume you just want to estimate an equation, and I'm going to ignore the part about ADF testing (since it doesn't make sense)...
Enter your equation as:

Code: Select all

d(interest) c trend interest(-1)

Re: illegal lag or index specification for coefficient C

Posted: Thu Oct 03, 2013 8:24 am
by Chuvaekek
doesn't work either. trend is not defined.

im using eviews 6.


i have another question.how can i convert may data into non-stationary data and stationary data?
thank you.

Re: illegal lag or index specification for coefficient C

Posted: Thu Oct 03, 2013 8:34 am
by EViews Gareth

Code: Select all

d(interest) c @trend interest(-1)

Re: illegal lag or index specification for coefficient C

Posted: Thu Oct 03, 2013 8:46 am
by Chuvaekek
it didn't work. anyway. if my data has a unit root, it will stay as it is. but how will i generate new data in 1st difference?

Re: illegal lag or index specification for coefficient C

Posted: Thu Oct 03, 2013 9:24 am
by startz

Re: illegal lag or index specification for coefficient C

Posted: Sat Oct 19, 2013 9:57 am
by Chuvaekek
thank you startz

anyway. I used 1st differenced data in cointegration and granger. i did the test in groups. e.g. 1 independent variables and 3 dependent. the result showed that all of them have cointegrating relation. however, when i run the variables in pair. they dont established cointegrating relation but the granger results that the ind granger cause the dep variable. Im confused. pls tell the what is the right step in testing the econometric?

thank you again