Re: [Gretl-users] VECM alpha restrictions
On Tue, 11 Jan 2011, Allin Cottrell wrote:
Part of my motivation for the switch was that if you give a
restriction such as "a[1] = 0" (with a single index) this means
that all EC coefficients in equation 1 are restricted to zero, or
variable 1 is weakly exogenous. And it seemed more intuitive that
if you give just one index it should be read as the leading one,
not the trailing one.
This makes good sense, but does it warrant a compatibility breakage? I'm
with Sven on this one.
However, I take your point that this is a
matter of convention; all that really matters is that the manual
is clear on what we're doing.
(Either way, I don't want to mess with our existing \beta
indexation at this point.)
I'm sure everybody agrees on this.
Riccardo (Jack) Lucchetti
Dipartimento di Economia
Università Politecnica delle Marche
r.lucchetti(a)univpm.it
http://www.econ.univpm.it/lucchetti