How can I run an LR test for switching models in eviews?

10 February 2015 1 3K Report

I run a Markov switching models and now I want to run Log-Likelihood ratio test to test the non-switching hypothesis (one state model) against a two-state mode. How this test run in eviews 8

Kizito Mubiru

We need to establish whether your Markov chain is stationary with constant transition probabilities or non stationary. For the stationary case , simple approaches exist unlike the non stationary case.

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