Determine the appropriate lag structure of the model selected in Step 3. Estimate the model in Step 4 using Ordinary Least Squares (OLS). Ensure residuals from Step 5 are serially uncorrelated and homoskedastic. Perform the Bounds Test. Estimate speed of adjustment, if appropriate. The following...
(1997) and Pesaran et al. (2001). I Australia and GriffithUniversity, where this paper was presented, are also acknowledged. Reformulating Critical Values for the Bounds F-statistics Approach to Cointegration: An Application to the Tourism Demand Model for Fiji ABSTRACT period 1970-2000, using ...
Introduction ARDL model EC representation Bounds testing Postestimation Further topics Summary ardl: Estimating autoregressive distributed lag and equilibrium correction models Sebastian Kripfganz1 Daniel C. Schneider2 1University of Exeter Business School, Department of Economics, Exeter, UK 2Max Planck ...
Model Specification To observe the growth effect of interest rate volatility in the nation, a model is specified to capture the relationship that exists between the variables. Thus, gross domestic product (GDP) is the dependent variable, whereas interest rate volatility is the independent variable of...
4.1.3 Dynamic interaction using auto regressive distributed lag (ARDL) model After the completion of pre-estimation tests for ARDL, the next step is to find the short and long-run relationship between carbon emission and selected variables for the sample countries using the ARDL equation. The opt...
The empirical investigation carried out in the present article is based on the ‘AK’ model introduced by Rebelo (1991) and then used by Pagano (1993), where output growth depends on total factor productivity, the efficiency of financial intermediation, and the saving rate:Y=AKtwhere, Y, A ...
Therefore, this research contributes to the comprehension of the effect of renewable and non-renewable energy consumption, urban population, R&D expenditures, and technological innovation on carbon emissions intensity by using a novel dynamic autoregressive distributed lag simulation model, which is ...
A rigorous two-step process investigated the causal correlations among variables. The autoregressive distributive lag (ARDL) model was used to scrutinize long-term relationships, while a vector error correction (VEC) model was used to ascertain the directionality of these causal relationships. The ...
The premise of behavioral finance is that investment decisions are made to satisfy the investor rather than maximizing the profit. Consequently, while examining the accuracy of the model put forward by empirical studies in traditional finance, it is also important to create models that explain the ...
Even if all the three previous facts could also be tested within a nonlinear threshold Vector Error Correction Model (VECM) or by smooth transition model,12 these models may suffer from the convergence problem due to the proliferation of the number of parameters, which is not the case with ...