Question: According the methodology proposed by Sims ( 1 9 8 0 ) Group of answer choices It is recommended to detrend variables if they contain
According the methodology proposed by Sims
Group of answer choices
It is recommended to detrend variables if they contain a unit root
All of the alternatives
The variables to be included in the VAR are never selected according to the relevant economic model
It is recommended against differencing variables even if they contain a unit root
It is recommended to diference variables if they contain a unit root
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
