Get Vector Error Correction Model Stata Interpretation
Pictures. The ce1 is the error correction term (ect) and it is the speed at which the dependent variable returns to equilibrium. R has a large head start, but the catchup targets are luetkepohl's package, stata, eviews and pcgive.
Vector error correction models are very similar to var models and can have the following form there are multiple ways to estimate vec models.
The first regression shows the ardl model results (level representation), the second regression displays the error correction representation of the same welcome to the forum. If the variable are cointegrated (i.e, if the null hypothesis of no cointegration is rejected), the residuals from the equilibrium regression can be used to estimate the ecm. The first regression shows the ardl model results (level representation), the second regression displays the error correction representation of the same welcome to the forum. Regression results with correction of autocorrelation in stata.
