Question: Find the best dynamic linear model for the time series of U.S. GDP growth rates in Exercise 1. Entertain a nonlinear model that captures your

Find the best dynamic linear model for the time series of U.S. GDP growth rates in Exercise 1. Entertain a nonlinear model that captures your findings in Exercise 1. First, implement a linearity fest against a STAR model. If linearity is rejected, find the best STAR model. Interpret the dynamics in the upper, lower, and intermediate regimes?

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For the time series of US GDP growth rates wend that the best dynamic linear model is an AR12 In Table 12 we report the estimation results Table 12 Quarterly GDP Growth Rate Estimation of a AR12 Model ... View full answer

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