ECM Model interpretation

[Rose Banda]

Hi Everyone,

1. I am trying to understand the meaning of D1 and LD under the short run output section of the ecm model.What do the stand for?
2. If the other variables don't appear in the short run output section, does that mean they have no significant impact on the dependent variable in the short run? They seem to appear in the long run despite significance or lack of it.
3. What does it mean for the short run independent variables when the LD of the dependent variable in the short run section is not significant.

Thank you

[Rose Banda]

In some papers I have read, I have seen the following in the regression tables

1. ECt−1 and ECM(–1) is this the speed of adjustment
2. I have also seen for example D(LGDP) D( LGDP(–1)) is this the D1 and LD respectively that I mention in the above questions.

this is part of my result

fm
D1. -1.206073 .372867 -3.23 0.003 -1.967569 -.4445774
LD. -.7804103 .1993197 -3.92 0.000 -1.187475 -.3733451


Would I the present it in my thesis as:

D(Fm) and D(fm(-1))?

Thanks

[Rose Banda]

Hi Everyone.

(My stata wont let me take pics for some unknown reason so apologies in advance)

Below is the short run section from one of my Error Correction models.For this ECM lcapg is my dependent variables. the lag for my ardl model was (2 1 0 0 2 1 2). tm and fm are dummies.

1. My first question is why is the lcapg(dependent variable) appearing under the SR section, when I run the ec with maxlag(3) the dependent does not appear.Is it normal that its appearing here?

2. Also, since my dependent under SR is not significant with a P value of 0.120. does this mean that I cannot interpret results for the short run regressors (trade, fdi and the dummies) despite the fact that the speed of adjustment coefficient is negative and significant? Or can I interpret them. If not should I interpret the short run results based on the ardl model (i.e ardl without ec in the command)

2. Can someone please confirm if LD under lfdi mean first difference at lag one



-------------+----------------------------------------------------------------
SR |
lcapg |
LD. | -.1934186 .1209676 -1.60 0.120 -.4404674 .0536303
|
ltrade |
D1. | -.4589419 .1527858 -3.00 0.005 -.7709722 -.1469116
|
lfdi |
D1. | -1.175583 .3667936 -3.21 0.003 -1.924676 -.4264909
LD. | -.7322268 .1987695 -3.68 0.001 -1.138168 -.3262853
|
tm |
D1. | .4404125 .140768 3.13 0.004 .1529259 .727899
|
gm |
D1. | 1.815268 .6031917 3.01 0.005 .5833863 3.04715
LD. | 1.360591 .3365541 4.04 0.000 .6732563 2.047927
|
_cons | -.4406708 .6343931 -0.69 0.493 -1.736274 .8549327

[Rose Banda]

I solved this