In modelling smooth transition regression, the transition variable is supposed to be deterministic trend, lagged variable, or sometimes exogenous variable.
My question is what is the theory behind using such exogenous? what is the criterion behind using it?
Ajit kumar Roy
' Exogenous' variables, used as additional regressors. The transition variable can be a past value of lagged dependent variable. Exogenous growth assumes that economic prosperity is primarily determined by factors which exist outside of the given economy as opposed to internal factors
0 votes
0 thanks
Huthaifa Alqaralleh
while I agree with you Mr Ajit, I still concern what is the main reason(Justification) for such choice
0 votes
0 thanks
- Badges
- Science topic
- Similar topics
- Engineering
- Modeling
More Huthaifa Alqaralleh's questions See All
Similar questions and discussions