Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money.

B-Tier
Journal: Oxford Bulletin of Economics and Statistics
Year: 1990
Volume: 52
Issue: 2
Pages: 169-210

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper gives a systematic application of maximum likelihood inference concerning cointegration vectors in non-stationary vector valued autoregressive time series models with Gaussian errors, where the model includes a constant term and seasonal dummies. The hypothesis of cointegration is given a simple parametric form in terms of cointegration vectors and their weights. The relation between the constant term and a linear trend in the non-stationary part of the process is discussed and related to the weights. Tests for the presence of cointegration vectors, both with and without a linear trend in the non-stationary part of the process are derived. Then estimates and tests under linear restrictions on the cointegration vectors and their weights are given. The methods are illustrated by data from the Danish and the Finnish economy on the demand for money. Copyright 1990 by Blackwell Publishing Ltd

Technical Details

RePEc Handle
repec:bla:obuest:v:52:y:1990:i:2:p:169-210
Journal Field
General
Author Count
2
Added to Database
2026-01-25