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State Space Z-Statistic for final State

Posted: Sun Feb 03, 2019 9:32 am
by kiyotaki

I am estimating a state space model with one time varying coefficient with annual data covering 1970 2017. I attach the Eviews outputs to the post. As you will see the fixed coefficients are statistically significant according to their corresponding z values. However, the final state appears to be insignificant as it has a lower z value.

I have retrieved the state values as a series whose graph can also be seen on the attached graphs. So my question is that the retrieved state series of 48 states can still be used for analysis despite insignificant final state?


2019-01-25_19-00-20.jpg (43.77 KiB) Viewed 367 times

2019-01-25_19-53-00.png (8.28 KiB) Viewed 367 times