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st: multivariate cointegration test


From   Merijn Groenenboom <[email protected]>
To   [email protected]
Subject   st: multivariate cointegration test
Date   Thu, 4 Aug 2011 23:02:16 +0200

Dear Statalisters,

I am writing a research about the effect of economic indicators on stock prices.
First I tested for unit roots. Only some variables were stationary at
level, but all variables were stationary at first differences.
Then I will test for multivariate cointegration using Johansen's
method. But before that I use AIC to determine the appropriate lag
lengths.
However I am not sure I have to use level or first differences in AIC
test and multivariate cointegration test.
I know after these tests I have to use first differences for granger
causality test and impulse response function.
But I think AIC and cointegration test should be done at level.
However I am not 100% sure and to avoid spurious results I hope
somebody with experience can tell me the answer!


Thank you.

Merijn G
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