Is it required or necessary to include control variables in ARDL-ECM analysis, given that many studies in the literature have applied the ARDL-ECM model without incorporating control variables? Could you provide references to support your answer?
Including control variables in an ARDL-ECM analysis is not always necessary and depends on your research objective, theoretical justification, and empirical considerations. If the key independent variables sufficiently explain the dependent variable, adding controls may lead to overfitting or multicollinearity issues. Parsimony is key as one wouldn't want to add needless variables
That purely depends with your research objectives. It is not necessary not unless there is a reason for introducing control variables within your model.
Including control variables in an ARDL-ECM (Autoregressive Distributed Lag - Error Correction Model) analysis is not always required but depends on the context and research objectives. Here is a precise explanation:
In summary, the inclusion of control variables in ARDL-ECM depends on the research context, theoretical framework, and objectives. If they are not included, you should have a clear rationale grounded in theory or methodology to justify their exclusion.
I would use background research to support the non-inclusion of variables within the model. And as other colleagues have already indicated, you should also base your modeling on your research objectives.
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