I have one simple question. It exist cointegration betwen variables when the VECM model displays a significant long run coefficient, but Johansen Test showed 0 ecuations of cointegration?.
This is Johansen output test with ideal lags (3) from varsoc command:
Code:
vecrank log_pib_real log_gasto_publico, trend(rconstant) lag(3) Johansen tests for cointegration Trend: rconstant Number of obs = 62 Sample: 1953 - 2014 Lags = 3 ------------------------------------------------------------------------------- 5% maximum trace critical rank parms LL eigenvalue statistic value 0 8 223.27711 . 15.0767* 19.96 1 12 228.95815 0.16745 3.7146 9.42 2 14 230.81546 0.05815 -------------------------------------------------------------------------------
I've used the ideal lag from varsoc command (which is 3) and i estimated anyway the VECM model since variables are I(1). But i thought VECM would confirm Johansen test... however it didn't happen. Here it is the VECM out put model.
Code:
vec log_pib_real log_gasto_publico, trend(rconstant) lag(3) Vector error-correction model Sample: 1953 - 2014 Number of obs = 62 AIC = -6.99865 Log likelihood = 228.9581 HQIC = -6.837005 Det(Sigma_ml) = 2.13e-06 SBIC = -6.586946 Equation Parms RMSE R-sq chi2 P>chi2 ---------------------------------------------------------------- D_log_pib_real 5 .027681 0.7742 191.9551 0.0000 D_log_gasto_pu~o 5 .062084 0.5260 62.14303 0.0000 ---------------------------------------------------------------- ------------------------------------------------------------------------------------- | Coef. Std. Err. z P>|z| [95% Conf. Interval] --------------------+---------------------------------------------------------------- D_log_pib_real | _ce1 | L1. | -.0761765 .0253495 -3.01 0.003 -.1258605 -.0264925 | log_pib_real | LD. | .4663022 .1264797 3.69 0.000 .2184064 .7141979 L2D. | .1955121 .1214004 1.61 0.107 -.0424284 .4334525 | log_gasto_publico | LD. | .1191235 .0638254 1.87 0.062 -.0059721 .244219 L2D. | -.1618306 .0646488 -2.50 0.012 -.28854 -.0351212 --------------------+---------------------------------------------------------------- D_log_gasto_publico | _ce1 | L1. | .0125409 .0568538 0.22 0.825 -.0988906 .1239724 | log_pib_real | LD. | .603882 .2836692 2.13 0.033 .0479006 1.159863 L2D. | .218229 .2722772 0.80 0.423 -.3154246 .7518826 | log_gasto_publico | LD. | .202472 .1431479 1.41 0.157 -.0780928 .4830367 L2D. | .0906771 .1449946 0.63 0.532 -.1935072 .3748614 ------------------------------------------------------------------------------------- Cointegrating equations Equation Parms chi2 P>chi2 ------------------------------------------- _ce1 1 278.1473 0.0000 ------------------------------------------- Identification: beta is exactly identified Johansen normalization restriction imposed ----------------------------------------------------------------------------------- beta | Coef. Std. Err. z P>|z| [95% Conf. Interval] ------------------+---------------------------------------------------------------- _ce1 | log_pib_real | 1 . . . . . log_gasto_publico | -.7668141 .0459783 -16.68 0.000 -.8569299 -.6766983 _cons | -4.778057 .4516397 -10.58 0.000 -5.663255 -3.89286 -----------------------------------------------------------------------------------
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