Abstract
This note explains why the econometric techniques for dealing with non-stationary data are typically: first, unit root tests to establish the order of integration; second, Johansen tests to determine the number of cointegrating vector; third, two types of residual diagnostic tests to ensure that the parameters are consistently and efficiently estimated.
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© 1997 Springer-Verlag Berlin Heidelberg
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Lim, G.C. (1997). A Note on Estimating Dynamic Economic Models of the Real Exchange Rate. In: Stein, J.L. (eds) The Globalization of Markets. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-59246-1_5
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DOI: https://doi.org/10.1007/978-3-642-59246-1_5
Publisher Name: Physica, Heidelberg
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