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Imposing restrictions in vecm in r

1 message · Prabhdeep Kaur

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Good morning Sir
My name is Prabhdeep Kaur. I am a research scholar at Guru Nanak Dev University, Amritsar, India.
Sir,?I am trying to test some restrictions in vecm in R but having some problems in the same. I shall be very thankful to you if you can help me in the same. Here is ?a brief description of the problem:
I am having three variables x,y and z and getting two cointegrating vectors (r=2). I used the following commands:>coint<-cbind(x,y,z)>cointe<-ca.jo(coint,ecd="none",type="trace",k=2,spec="longrun")>vecm<-cajorls(cointe,r=2)>summary(vecm)
I want to re-estimate the model with the following restrictions on the cointegrating vectors:
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?ect1 ? ? ? ? ? ? ? ect2? ? ? ? ? x ? ? ? ? ? ? ? ? ? ? ? ?1 ? ? ? ? ? ? ? ? ? ? 0? ? ? ? ? y ? ? ? ? ? ? ? ? ? ? ? ?b1 ? ? ? ? ? ? ? ? ? 1? ? ? ? ? z ? ? ? ? ? ? ? ? ? ? ? ?0 ? ? ? ? ? ? ? ? ? ? b2? ? ? ? constant ? ? ? ? ? ? ?c1 ? ? ? ? ? ? ? ? ? ?c2
Here b1y and c1 are the coefficients of the first cointegrating vector and b2 and c2 are the coefficients of the second cointegrating vector.
I know I need to use blrtest for the same but unable to define the H martix.
Can you please help me know how can I specify the?H?martix. I shall be very thankful to you if you can guide me in the right direction. Or I need to use tsDyn package in R for the execution of the same.
Thanks and Regards!?Prabhdeep KaurResearch Scholar
Department of CommerceGuru Nanak Dev UniversityAmritsarIndia