Tuesday, 6 January
2009
Tue, 6 Jan
'09
5:34 p.m.
Hello...
I've got VECM model with [3x3] matrix Pi=alpha*beta' that looks as follows: [-1,
a1*b, a2*d; 0, b-1, 0; 0, 0, d-1]. a1, b, a2 and d are parameters. I was thinking about
imposing restrictions for elements that equals 0. As I'm aware it's not possible
to put such restrictions on matrix Pi (or am I wrong?). It's better to find sensible
'alpha' and 'beta' in this case (but I don't have any ideas yet )?
With regard,
Mariusz