In a VECM

question 47

Multiple Choice

In a VECM,

• A)past values of Y_t - θ X_t help to predict future values of ΔY_t and/or ΔX_t.
• B)errors are corrected for serial correlation using the Cochrane-Orcutt method.
• C)current values of Y_t - θ X_t help to predict future values of ΔY_t and/or ΔX_t.
• D)VAR techniques, such as information criteria, no longer apply.

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Definitions:

Sum Numbers

The process or action of calculating the total or aggregate of a series of numbers.

Break Statements

In programming, these are used to exit loops or switch statements before they have naturally completed.

Continue Statements

A control statement in programming that skips the remaining code in the current iteration of a loop and starts the next iteration.

Looping Mechanisms

Structures in programming that repeat a sequence of instructions until a certain condition is met.