Dear Researchers
I need some suggestion for selecting the test for parameter stability. I have already applied the CUSUM or CuSum square tests for parameter stability but i find some literature which suggested that use other test for parameter stability as these two tests have low power. please guide me which test i will prefer and how can i use it in eview as i have done all analysis in eview.
thanks in advance
There a number of options available in EViews.
Please go through the following link:
http://www.eviews.com/help/helpintro.html#page/content/testing-Stability_Diagnostics.html
Cusum and Cusum of Squares test.
You can see also my paper: https://www.researchgate.net/publication/273909610_The_Impact_of_Foreign_Direct_Investment_on_the_Unemployment_Rate_and_Economic_Growth_in_Greece_A_Time_Series_Analysis
Conference Paper The Impact of Foreign Direct Investment on the Unemployment ...
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