Hi,
| I was just trying to estimate a VECM in STATA, but am not quite sure which option to choose regarding the trend/constant. STATA offers options such as constant, trend, rtrend, etc. which I could quite confused it. I ran several versions and each time got completely different results, even different signs for coefficients and different p-values/ significance levels. I'm absolutely happy to work this out myself, of course (after all I shouldn't pass my work out to someone else), but does anyone have a suggestion as to how to tackle this problem/ where to start in order to determine if the cointegration equation has, say, a trend, whether the cointegration is stationary around a zero-mean etc.? Thanks a lot for any advice on this |
