On Thu, 21 Dec 2006, Javier García wrote: If you look at the online help for the "coint2" command, or in the PDF manual file, "Gretl Command Reference", under the entry for "coint2", you will find a very explicit statement of what are the null and the alternative hypotheses for the Trace and Lmax tests. Here is an extract: <quote> The following table is offered as a guide to the interpretation of the results shown for the test, for the 3-variable case. H0 denotes the null hypothesis, H1 the alternative hypothesis, and c the number of cointegrating relations. Rank Trace test Lmax test H0 H1 H0 H1 --------------------------------------- 0 c = 0 c = 3 c = 0 c = 1 1 c = 1 c = 3 c = 1 c = 2 2 c = 2 c = 3 c = 2 c = 3 </quote> Allin Cottrell