Hi; I wanted to know what are the hypothesis that Gretl uses in the Johansen’s tests (trace and lambda max). We think there is a very confused topic in the literature, because some articles (programs) says(uses) that both have the same hypothesis (H0: r <= r0; H1: r>r0), while others defend the following: Trace H0: r <= r0 H1: r>r0 Lambda max H0: r =r0 H1: r>r0 Where r0 is the number of coitegration vectors Is Gretl use either of them?? Thanks Javi --------------------------------- LLama Gratis a cualquier PC del Mundo. Llamadas a fijos y móviles desde 1 céntimo por minuto. http://es.voice.yahoo.com

javier garcia enriquez schrieb: > r>r0), while others defend the following: > > Trace H0: r <= r0 H1: r>r0 > Lambda max H0: r =r0 H1: r>r0 > As John already answered 2 months ago, the null hypotheses are the same in principle. And as I answered 2 months ago, whether you posit <=0 or =0 depends on your interpretation or previous test results. (Actually, one could also argue that the alternative hypotheses are the same, but that would probably cause still more confusion...) > > Is Gretl use either of them?? > Gretl's output is very clear about this (it reports both), so where do your doubts come from?