e.g:
this is the regressed regression through the method of Cointegration (panel FMOLS- Fully Modified OLS), but there were no intercept term in the regression equation given by E-views software.
Y = - 0.134 RIR + 3.037Inf - 1.307Pop + 33.446 Life+17.696Trade
so, what can be its reason, give me a favor in this regards. I will b looking forward to have an answer of it.
Thanks
I have not used eviews, or FMOLS, but are you saying it would not allow you to put in an intercept term? In SAS you have to say "NOINT" to make it leave out the intercept term in SAS PROC REG, for example.
It looks like you have some kind of balancing equation where you might expect no intercept, just the estimated residuals. Does eviews default to that?
I'm curious, does FMOLS let you account for the heteroscedasticity in the estimated residuals?
The Technical Details help manual of EViews indicates that all the variables are demeaned for this procedure. Then, the output of the regression is presented without this determinist component.
Yes James, FMOLS does account for Heteroskedasticity and Eviews by default does it with not having intercept term.
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