Perfect. The way you teach is impressive because as far as I see, VECM is thought only by writing down the equations and talking about them. I saw no video underlining that "what is the purpose of error correction, why we need it in practic?" . Because of that missing part, there remains always a question mark on the listerners' mind. But this explanations is an exeptional one. Thank you!
Hey! I'm studying some macroeconomic variables for my dissertation and through PP test I've found out that all the variables (1 dep. and 3 indep.) are stationary at 2nd diff when checked for Intercept. However, when I applied OLS on the 2nd diff values, my model wasn't significant. I'd be really thankful if you could suggest a way of carrying out the analysis properly.
Hi I'm running a time series regression using per capita GDP growth as dependent variable and using aid and a square term as independent variable These are not stationary at level and can I take the first difference and do a cointergration test
Mr. Eloriaga, you are the man. Thanks for a robust but still straightforward explanation about VECMs!
Perfect. The way you teach is impressive because as far as I see, VECM is thought only by writing down the equations and talking about them. I saw no video underlining that "what is the purpose of error correction, why we need it in practic?" . Because of that missing part, there remains always a question mark on the listerners' mind. But this explanations is an exeptional one. Thank you!
Hey! I'm studying some macroeconomic variables for my dissertation and through PP test I've found out that all the variables (1 dep. and 3 indep.) are stationary at 2nd diff when checked for Intercept. However, when I applied OLS on the 2nd diff values, my model wasn't significant. I'd be really thankful if you could suggest a way of carrying out the analysis properly.
Innovative instructions given wrto what a ecm actually tries to achieve (correct) .👍
Isn't the Johansen cointegration test for non-stationary series?
Thank you, sir. These videos are wonderful!
fantastic explanation. thank you
Great video. Thank you so much.
Hi I'm running a time series regression using per capita GDP growth as dependent variable and using aid and a square term as independent variable
These are not stationary at level and can I take the first difference and do a cointergration test
What happens if there is no cointegration ?
you can regress them directly