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### Funny state switching

Posted: **Mon Aug 05, 2019 12:52 pm**

by **startz**

Here's a snippet of a switching regression, simple switching on postwar GDP growth. Note that the standard error of the regression is larger than the standard deviation of the dependent variable. Is that odd?

- Capture.PNG (3.96 KiB) Viewed 288 times

### Re: Funny state switching

Posted: **Thu Sep 12, 2019 4:44 pm**

by **EViews Glenn**

Hard to say. The switching objective is very different from the simple minimum sums-of-squares that you get in the standard case.

What is regime specific in your model?

### Re: Funny state switching

Posted: **Thu Sep 12, 2019 5:45 pm**

by **startz**

Just the mean.

### Re: Funny state switching

Posted: **Thu Sep 19, 2019 8:25 am**

by **EViews Glenn**

Have to think about this. Can you send me the workfile?