24 January 2016 2 676 Report

I would like to ask you for help. I am not sure when it should be appropriate to use the ordinary (static) variance estimator insead of long-run variance estimator for use in scaling the moment matrix (or computing the individual variance weights) in Dynamic OLS? As far as i know the long-run variance estimator should be originally applied. However, EViews still have the opportunity of ordinary variance for DOLS. Why? 

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