Feeding two equations in Garch - Bekk

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adnangb
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Joined: Sat Sep 01, 2012 10:45 am

Feeding two equations in Garch - Bekk

Postby adnangb » Sat Sep 01, 2012 11:12 am

Dear All

I am trying to implement a paper on bilateral trade flows to exchange rate uncertainty. The paper uses bivariate garch - BEKK model to calculate conditional variances. However, there are three equations given in the paper that are used to estimate the variances. I have never performed Garch modelling before. Through my search on internet, I realised that Eviews is the best software to perform this analysis. Can anyone please guide me where and how should I feed these equations while performing the analysis. I studied so much but dont understand what to do with the equations. I am attaching a picture of the equations with variables description in paragraph.

I was also feeling is there any chance that equation 1 is analysed separately and then equation 2 is analysed or both equations are fed at the same time. Please help me as I am totally lost.



Regards
Attachments
BEKK GARCH.png
BEKK GARCH.png (122.31 KiB) Viewed 1321 times

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