[Gretl-devel] VECM estimation: gretl vs JMulTi

Riccardo Jack Lucchetti r.lucchetti at univpm.it
Thu Aug 31 05:20:32 EDT 2006


On Thu, August 31, 2006 10:49, Sven Schreiber wrote:

>> Please try to reproduce the Denmark example you find in Johansen's book. The
>> data are available as denmark.gdt among gretl example datasets. JMulTi seems
>> to do strange things with VECMs. I exported the denmark dataset to JMulTi
>> format via the new ad-hoc facility: then, I could reproduce the same results
>> we have in gretl for almost everything (descriptives, VARs, etc.) but VECMs
>> proved impossible. I understand you know the main developer of JMulTi
>> personally: it may be a good idea to ask his opinion if/when we're certain
>> that results are indeed different.
>
> A quick check doesn't show any problems, exactly the same output. I
> suspect that you get bitten by different conventions w.r.t. lag
> specification, deterministics etc.
> But I don't have Johansen's book with me here right now, so what's the
> exact specification you're having trouble with?

Attached you will find gretl's and JMulTi's output for what I believe should
be the same model. You will see the numbers are similar, but definitely not
something you could blame floating-point rounding for. I am using JMulTi 4.04,
as the latest version doesn't like my version of java.

Riccardo "Jack" Lucchetti
Dipartimento di Economia
Facoltà di Economia "G. Fuà"
Ancona
-------------- next part --------------

VECM system, lag order 2
Maximum likelihood estimates, observations 1974:3-1987:3 (T = 53)
Cointegration rank = 1
Case 2: Restricted constant

Cointegrating vectors (standard errors in parentheses)

LRM(-1)           1.0000 
                 (0.0000) 
LRY(-1)          -1.0329 
                (0.12805) 
IBO(-1)           5.2069 
                (0.50735) 
IDE(-1)          -4.2159 
                 (1.0051) 
const            -6.0599 
                (0.79464) 

Log-likelihood = 669.115
Determinant of covariance matrix = 1.27152e-16
AIC = -23.5893
BIC = -21.9535
HQC = -22.9602

Equation 1: d_LRM

      VARIABLE       COEFFICIENT        STDERROR      T STAT   P-VALUE

  d_LRM_1               0.262771         0.146270      1.796   0.07913 *
  d_LRY_1              -0.144254         0.131686     -1.095   0.27915
  d_IBO_1              -0.0401148        0.377610     -0.106   0.91587
  d_IDE_1              -0.670698         0.499446     -1.343   0.18604
  S1                   -0.0576527        0.00946248   -6.093  <0.00001 ***
  S2                   -0.0163050        0.00845625   -1.928   0.06016 *
  S3                   -0.0408586        0.00807873   -5.058  <0.00001 ***
  EC1                  -0.212955         0.0592981    -3.591   0.00081 ***

  Mean of dependent variable = 0.00775739
  Standard deviation of dep. var. = 0.0330857
  Sum of squared residuals = 0.0204556
  Standard error of residuals = 0.0196457
  Unadjusted R-squared = 0.659708
  Durbin-Watson statistic = 2.07569
  First-order autocorrelation coeff. = -0.0438555

Equation 2: d_LRY

      VARIABLE       COEFFICIENT        STDERROR      T STAT   P-VALUE

  d_LRM_1               0.602668         0.153164      3.935   0.00029 ***
  d_LRY_1              -0.142828         0.137893     -1.036   0.30584
  d_IBO_1              -0.290609         0.395408     -0.735   0.46618
  d_IDE_1              -0.182561         0.522987     -0.349   0.72866
  S1                   -0.0268262        0.00990849   -2.707   0.00955 ***
  S2                    0.00784216       0.00885483    0.886   0.38052
  S3                   -0.0130827        0.00845951   -1.547   0.12899
  EC1                   0.115022         0.0620931     1.852   0.07053 *

  Mean of dependent variable = 0.00333981
  Standard deviation of dep. var. = 0.0252391
  Sum of squared residuals = 0.0224293
  Standard error of residuals = 0.0205717
  Unadjusted R-squared = 0.334755
  Durbin-Watson statistic = 1.96451
  First-order autocorrelation coeff. = 0.00942197

Equation 3: d_IBO

      VARIABLE       COEFFICIENT        STDERROR      T STAT   P-VALUE

  d_LRM_1               0.0573489        0.0578902     0.991   0.32715
  d_LRY_1               0.144224         0.0521184     2.767   0.00818 ***
  d_IBO_1               0.310660         0.149449      2.079   0.04338 **
  d_IDE_1               0.203769         0.197669      1.031   0.30812
  S1                   -0.000400021      0.00374503   -0.107   0.91541
  S2                    0.00762196       0.00334679    2.277   0.02757 **
  S3                    0.00462651       0.00319737    1.447   0.15484
  EC1                   0.0231772        0.0234688     0.988   0.32864

  Mean of dependent variable = -0.00111367
  Standard deviation of dep. var. = 0.00980228
  Sum of squared residuals = 0.00320415
  Standard error of residuals = 0.00777532
  Unadjusted R-squared = 0.367037
  Durbin-Watson statistic = 1.61592
  First-order autocorrelation coeff. = 0.174104

Equation 4: d_IDE

      VARIABLE       COEFFICIENT        STDERROR      T STAT   P-VALUE

  d_LRM_1               0.0613395        0.0390156     1.572   0.12291
  d_LRY_1               0.0177406        0.0351257     0.505   0.61598
  d_IBO_1               0.264939         0.100723      2.630   0.01163 **
  d_IDE_1               0.212009         0.133221      1.591   0.11852
  S1                   -0.00482995       0.00252400   -1.914   0.06204 *
  S2                   -0.00117799       0.00225560   -0.522   0.60406
  S3                   -0.00288469       0.00215490   -1.339   0.18740
  EC1                   0.0294111        0.0158170     1.859   0.06951 *

  Mean of dependent variable = -0.000383719
  Standard deviation of dep. var. = 0.00689651
  Sum of squared residuals = 0.00145539
  Standard error of residuals = 0.00524025
  Unadjusted R-squared = 0.41339
  Durbin-Watson statistic = 1.95973
  First-order autocorrelation coeff. = 0.0155449


Cross-equation covariance matrix

                    d_LRM        d_LRY        d_IBO        d_IDE
d_LRM          0.00038595   0.00022597  -6.5007e-05  -2.9101e-05 
d_LRY          0.00022597   0.00042320  -1.2151e-05  -2.7357e-05 
d_IBO         -6.5007e-05  -1.2151e-05   6.0456e-05   1.0517e-05 
d_IDE         -2.9101e-05  -2.7357e-05   1.0517e-05   2.7460e-05 

determinant = 1.27152e-16
-------------- next part --------------
*** Thu, 31 Aug 2006 11:12:09 ***
VEC REPRESENTATION
endogenous variables:     LRM LRY IBO IDE 
exogenous variables:       
deterministic variables:  CONST S1 S2 S3 
endogenous lags (diffs):  1 
exogenous lags:           0 
sample range:             [1974 Q3, 1987 Q3], T = 53
estimation procedure:     One stage. Johansen approach 


Lagged endogenous term:
=======================
              d(LRM)    d(LRY)    d(IBO)    d(IDE)  
---------------------------------------------------
d(LRM)(t-1)|    0.196     0.486     0.081     0.036  
           |   (0.141)   (0.155)   (0.056)   (0.039) 
           |   {0.165}   {0.002}   {0.149}   {0.365} 
           |   [1.388]   [3.130]   [1.443]   [0.906] 
d(LRY)(t-1)|   -0.164    -0.122     0.141     0.020  
           |   (0.131)   (0.145)   (0.052)   (0.037) 
           |   {0.213}   {0.400}   {0.007}   {0.577} 
           |  [-1.245]  [-0.842]   [2.716]   [0.558] 
d(IBO)(t-1)|   -0.026     0.111     0.310     0.374  
           |   (0.334)   (0.368)   (0.132)   (0.093) 
           |   {0.938}   {0.764}   {0.019}   {0.000} 
           |  [-0.077]   [0.300]   [2.343]   [4.016] 
d(IDE)(t-1)|   -0.583    -0.424     0.212     0.154  
           |   (0.485)   (0.535)   (0.192)   (0.135) 
           |   {0.229}   {0.428}   {0.269}   {0.254} 
           |  [-1.202]  [-0.793]   [1.105]   [1.142] 
---------------------------------------------------


Deterministic term:
===================
            d(LRM)    d(LRY)    d(IBO)    d(IDE)  
-------------------------------------------------
   S1(t)|   -0.051    -0.014    -0.003    -0.002  
        |   (0.008)   (0.008)   (0.003)   (0.002) 
        |   {0.000}   {0.097}   {0.398}   {0.318} 
        |  [-6.711]  [-1.660]  [-0.845]  [-0.998] 
   S2(t)|   -0.015     0.011     0.007    -0.001  
        |   (0.008)   (0.009)   (0.003)   (0.002) 
        |   {0.072}   {0.232}   {0.035}   {0.700} 
        |  [-1.798]   [1.196]   [2.109]  [-0.385] 
   S3(t)|   -0.037    -0.005     0.003    -0.001  
        |   (0.007)   (0.008)   (0.003)   (0.002) 
        |   {0.000}   {0.525}   {0.268}   {0.496} 
        |  [-5.158]  [-0.635]   [1.108]  [-0.681] 
-------------------------------------------------


Loading coefficients:
=====================
            d(LRM)    d(LRY)    d(IBO)    d(IDE)  
-------------------------------------------------
ec1(t-1)|   -0.274    -0.003     0.030    -0.003  
        |   (0.039)   (0.043)   (0.015)   (0.011) 
        |   {0.000}   {0.948}   {0.050}   {0.757} 
        |  [-7.092]  [-0.065]   [1.956]  [-0.310] 
-------------------------------------------------

Estimated cointegration relation(s):
====================================
          ec1(t-1)  
-------------------
LRM(t-1)|    1.000  
        |   (0.000) 
        |   {0.000} 
        |   [0.000] 
LRY(t-1)|   -0.981  
        |   (0.137) 
        |   {0.000} 
        |  [-7.143] 
IBO(t-1)|    4.602  
        |   (0.544) 
        |   {0.000} 
        |   [8.460] 
IDE(t-1)|   -2.412  
        |   (1.078) 
        |   {0.025} 
        |  [-2.238] 
CONST   |   -6.535  
        |   (0.851) 
        |   {0.000} 
        |  [-7.680] 
-------------------



VAR REPRESENTATION

modulus of the eigenvalues of the reverse characteristic polynomial:
|z| = ( 5.6567     5.6567     1.7701     1.7701     1.4970     1.0000     1.0000     1.0000     )

Legend:
=======
              Equation 1   Equation 2  ...
------------------------------------------
Variable 1 | Coefficient          ...
           | (Std. Dev.)
           | {p - Value}
           | [t - Value]
Variable 2 |         ...
...
------------------------------------------


Lagged endogenous term:
=======================
               LRM       LRY       IBO       IDE  
-------------------------------------------------
LRM(t-1)|    0.922     0.484     0.111     0.032  
        |   (0.146)   (0.161)   (0.058)   (0.041) 
        |   {0.000}   {0.003}   {0.056}   {0.428} 
        |   [6.302]   [3.002]   [1.909]   [0.792] 
LRY(t-1)|    0.105     0.881     0.112     0.024  
        |   (0.137)   (0.151)   (0.054)   (0.038) 
        |   {0.442}   {0.000}   {0.039}   {0.534} 
        |   [0.769]   [5.850]   [2.068]   [0.622] 
IBO(t-1)|   -1.287     0.098     1.448     0.359  
        |   (0.379)   (0.417)   (0.150)   (0.106) 
        |   {0.001}   {0.815}   {0.000}   {0.001} 
        |  [-3.398]   [0.234]   [9.654]   [3.400] 
IDE(t-1)|    0.078    -0.417     0.140     1.163  
        |   (0.494)   (0.544)   (0.196)   (0.138) 
        |   {0.875}   {0.444}   {0.474}   {0.000} 
        |   [0.157]  [-0.766]   [0.716]   [8.437] 
LRM(t-2)|   -0.196    -0.486    -0.081    -0.036  
        |   (0.141)   (0.155)   (0.056)   (0.039) 
        |   {0.165}   {0.002}   {0.149}   {0.365} 
        |  [-1.388]  [-3.130]  [-1.443]  [-0.906] 
LRY(t-2)|    0.164     0.122    -0.141    -0.020  
        |   (0.131)   (0.145)   (0.052)   (0.037) 
        |   {0.213}   {0.400}   {0.007}   {0.577} 
        |   [1.245]   [0.842]  [-2.716]  [-0.558] 
IBO(t-2)|    0.026    -0.111    -0.310    -0.374  
        |   (0.334)   (0.368)   (0.132)   (0.093) 
        |   {0.938}   {0.764}   {0.019}   {0.000} 
        |   [0.077]  [-0.300]  [-2.343]  [-4.016] 
IDE(t-2)|    0.583     0.424    -0.212    -0.154  
        |   (0.485)   (0.535)   (0.192)   (0.135) 
        |   {0.229}   {0.428}   {0.269}   {0.254} 
        |   [1.202]   [0.793]  [-1.105]  [-1.142] 
-------------------------------------------------


Deterministic term:
===================
               LRM       LRY       IBO       IDE  
-------------------------------------------------
S1   (t)|   -0.051    -0.014    -0.003    -0.002  
        |   (0.000)   (0.000)   (0.000)   (0.000) 
        |   {0.000}   {0.000}   {0.000}   {0.000} 
        |   [0.000]   [0.000]   [0.000]   [0.000] 
S2   (t)|   -0.015     0.011     0.007    -0.001  
        |   (0.000)   (0.000)   (0.000)   (0.000) 
        |   {0.000}   {0.000}   {0.000}   {0.000} 
        |   [0.000]   [0.000]   [0.000]   [0.000] 
S3   (t)|   -0.037    -0.005     0.003    -0.001  
        |   (0.000)   (0.000)   (0.000)   (0.000) 
        |   {0.000}   {0.000}   {0.000}   {0.000} 
        |   [0.000]   [0.000]   [0.000]   [0.000] 
CONST   |    1.790     0.018    -0.196     0.022  
        |   (0.000)   (0.000)   (0.000)   (0.000) 
        |   {0.000}   {0.000}   {0.000}   {0.000} 
        |   [0.000]   [0.000]   [0.000]   [0.000] 
-------------------------------------------------


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