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TARcoint

Posted: Sat Jan 04, 2014 10:13 am
by hsmellin
Hi,

I am looking to use the adds in tarcoint in order to determine whether there is threshold cointegration from a money demand equilibrium relationship log(m-p) = c + log(gdp) + r + e.
Two questions:

1. Can i treat all variables except the constant as endogenous since there needs to be at least 2 endogenous series?
2. When examining the output, is the F-equal is testing whether rho1 = rho2? and F-Joint (phi) is testing whether rho1 = rho2 = 0?

Thanks,
Mike

Re: TARcoint

Posted: Sat Jan 04, 2014 2:32 pm
by trubador
Yes, you got it all right.

Re: TARcoint

Posted: Sat Jan 04, 2014 5:12 pm
by hsmellin
Thanks! Thought I was correct!

Best,

Mike