If we want to test whether spread helps to predict output growth at horizon h, then Why and how do we estimate a regression The test relies on a t statistic, and the validity of the test relies on some assumptions, Which ones How might this change with the horizon Why do we need to use 'newey' instead of 'reg' when performing the test at h 8

Question: If we want to test whether spread helps to predict output growth at horizon h, then: Why and how do we estimate a regression? The

If we want to test whether spread helps to predict output growth at horizon h, then:

Why and how do we estimate a regression?
The test relies on a t-statistic, and the validity of the test relies on some assumptions, Which ones? How might this change with the horizon?
Why do we need to use 'newey' instead of 'reg' when performing the test at h=8?

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1 To test whether spread helps to predict output growth at horizon h we can estimate a regression model using historical data The regression model will allow us to examine the relationship between the ... View full answer

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