exponential coefficient

[Anjali Sreee]

Hello,

While doing analysis, either VAR or VECM, the coefficients in the result table are coming in exponential form, like 1.02e-07. So when the value is converted the percentage will be very less. Can anyone please help me why it is so ? Is there any solution for it.

[Andrew Musau]

The values of your outcome or specific RHS variables may be either too large or too small. You need to rescale them before conducting the estimation. For instance, if you have raw population values or GDP in dollars, consider expressing them in millions instead.