Displaying 1 result from an estimated 1 matches for "thenrank".
2007 Aug 05
1
Understanding of Johansen test.
...a[12]*y1[t-1] + a[22]*y1[t-1] +a[23]*y1[t-1] = 0
a[12]*y1[t-1] + a[22]*y1[t-1] +a[23]*y1[t-1] = 0
therefore number of co-integrating relationship is 3 am I correct?
Therefore in my understanding : if variables in a system show some co-integrating relationship thenrank should be close to zero.
Am I making any mistakes? Can anyone here clarify me?
Regards,
Megh
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