Multiple Choice
When estimating a VEC model using a two step least squares process,what is the second step?
A) use least squares to estimate the cointegrating relationship
B) use least squares to estimate first differences as a function of estimated residuals
C) use least squares to estimated residuals as a function of first differences
D) use least squares to estimate first differences as a function of lagged differences
Correct Answer:
Verified
Correct Answer:
Verified
Q1: What does VEC abbreviate?<br>A)vector error correction<br>B)variable error
Q3: What type of model provides information about
Q4: When estimating a VEC model using a
Q5: Impulse response funcitons can be difficult to
Q6: What is the difference between a VEC
Q7: Functions that show how variables adjust to
Q8: What does VAR abbreviate?<br>A)variance auto reduction<br>B)vector autoregressive<br>C)variance
Q9: What type of model tells you whether
Q10: In which case should a VAR model
Q11: What type of model shows how series