(EViews10): Estimate and Interpret VECM (2) #var #vecm #causality #lags #Johansen #innovations
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So, what do you understand by vector error correction model (VECM)? You may say any of the following: that it is a system having a vector of two or more variables that all the variables in a VECM are endogenous there are no exogenous variables VECM is constructed only if the variables are cointegrated cointegration implies evidence of a long ...
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