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st: Constraints on Coefficients

From   "H. Wang" <>
Subject   st: Constraints on Coefficients
Date   08 May 2006 08:58:43 +0100


I am testing for absolute form PPP, that is I have to keep the coefficients
on nominal exchange rate, domestic price level and foreign price level

I have tried to use

vec exchange rate, domestic price level foreign price level, trend (rt)

However, I have been kept told the constraint 1 is not identified.

Could anyone help me out?

Many thanks in advance


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