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Stability test- how to interpret the results?
Stability test- how to interpret the results?

Hi everyone,

I am currently doing a time-series analysis using the VECM.

I have one cointegrating equation and 5 parameters. The result of the eigenvalue stability condition is "The VECM specification imposes 4 unit moduli".

As I'm a beginner, I don't really know how to interpret this, and how should I proceed? I have attached the graph too.

Thanks in advance!
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Stability test- how to interpret the results?

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