Dear Jack and Sven,
I am trying to estimate an SVECM subject to long run restrictions using the SVAR package
(version 1.34, Gretl 2018a, Win 10). I found out that although cointegration case 3
(unrestricted constant) works well, case 4 (trend restricted to the cointegration space)
produces the following error message:
Matrices not conformable for operation*** error in function vecm_est, line 87
matrix mu = olspar[1,] | (jalpha * jbeta[n+1,])'
called by
function SVAR_estimate
Error executing script: halting
SVAR_estimate(&sv)
I restrict all the coefficients in beta beforehand. I also restrict those in alpha, but I
don't think this is relevant.
Could you take a look on it?
Thank you in advance,
Andreas Zervas
P.S. Is it possible to change the pink color in IRFs graphs from the SVAR package?