error correction

  1. S

    Interpreting VECM/ ECM result

    Hi, I am currently working on a paper where I run a VECM and get significant values. However, I am not quite sure about how to interpret the output and how take the different values and express them with an equation. I run the test in SATA using the vec command Attached is a picture of...
  2. L

    error correction model

    Hi, Could anyone give me the code for error correction model, please? I learned, how to apply both steps in "two-stage approach", but who should these results from both steps be used? What is the final model that should be implemented? Can anyone give me the SAS code that I could use? Any...
  3. C

    Standard Error Correction in Two-Stage Estimation

    There have been many papers on error corrections for two-stage estimation, such as Murphy-Topel (85). The basic model proceeds as follows: Stage 1: Y = B*X + m where B is the vector of coefficients, X is the matrix of explanatory variables and m is the residual. Stage 2: y = a*x + b*Yhat +...