The RATS Software Forum

Sorry for the confusion. I do indeed have two I(0) variables (the unemployment and inflation rates) and four I(1) variables in a single model, all of which are supposed to be endogenous. If I include the I(0) variables on the line of code (shown in previous posts) beginning "variables...",...

Thank you for the tip. I use that code as follows. (Note: I named my cointegrating relations coint1 and coint2.) equation(empty) estat1 dlcpi *(first stationary variable) equation(empty) estat2 lunemp *(second stationary variable) system(model=varmodel) variables ldpc gs10 lpdi lcs lags 1 to lags de...

I have a vector error-correction model with six endogenous variables: four are I(1) and two are I(0). Having used CATS to obtain cointegrating relations among the I(1) variables, I can "integrate" (sum) the two I(0) variables and then estimate the model in RATS. After I integrate, the code...