Dear All,

I am learning R and Time Series Econometrics for the first time. I have
doubt regarding cointegration specification criteria. The problem follows:

test1 <- ca.jo(data1,ecdet="const",type="trace",K=2,spec="transitory")---When
to specify transitory
test1 <- ca.jo(data1,ecdet="const",type="trace",K=2,spec="longrun")..when to
specify long-run

With regards,
Upananda

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