I am trying to model a VECM for the Real Estate market in Sweden. I want to create 4 models with 1=Sweden, and the other 3=Metropolitan areas. In the attachment is my model for on of the metro city's Malmö, and also included is GDP, Population Growth, Newly Built Dwellings and Interest Rates. All besides Interest Rates are in log form, this is due to that the central bank in Sweden has cut interest rates below zero in the past 2 years. I have tried solving this for the past 5 days but I do not understand how to interpret the cointegration equation. There are 3 lags (4=autocorr) included and r=2, please would anyone advise me on how to proceed?
Thank you in advance!!
Thank you in advance!!
Attached Files
