Is it a problem if the series is stationary at level and I run ECM ?

10 October 2019 1 9K Report

Hi, I ran unit root test and found that all variables are stationery at their levels. I then tested for co integration and it was confirmed. Then I ran ARDL and ECM models. The results were satisfactory and the ECM passed all the model diagnostic and residual tests. I read somewhere that there is no need for ECM if the series is stationery at level.

Mette Marit Johansen

Hi,

I have the same . Did you get an answer to your question? If so, I would like to here the anwer :)

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