Hi, I have been a little confused about interpreting my results from "ardl" command and "ardl, ec" command.
Could anyone please help me with answering these questions?
1. Prior to the bound test, I am running the command "ardl [indep.var] [dep.vars]" and I am getting coefficients for the variables under different lags. I was wondering whether these coefficients are the ones I am getting from the regression equation on Slide 5 from your presentation file (here)? If so, could you please tell me if it is correct to just interpret them as I would interpret normal regression results?
2. If the above is correct, are the long-run and short-run coefficients I get from "ardl, ec" command is the coefficients from the regression equation in slide 12? What is the difference between the coefficients from Question 1 and coefficients from ARDL with EC?
3. How do I explain it if the lagged terms of the same variables have different signs? For example, for variable x, lag 1 is positive and lag 2 is negative etc.
4. I am running my error correction with the command "ardl, ec1" because I am losing two of my coefficients in the short run when I use ec. Could you please help me with how I should interpret my short-run results with ec1 with the adjustment term? I have seen a different post on a similar question, but I am still a little bit confused.
I would highly appreciate it if anyone could answer my questions.
Kind Regards,
Munkhtuul
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