ARDL Bounds Testing specification

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londonphd
Posts: 37
Joined: Fri Oct 23, 2015 11:39 am

ARDL Bounds Testing specification

Postby londonphd » Tue Nov 10, 2015 12:19 pm

Hi all,

I was wondering if someone could take a look at the attached output from Eviews.

It is the Bounds Test output. There, as you can see, are 5 lagged level variables. The bounds test is conducted using Wald coefficient restriction test. My question is, why k=4, not 5? Should not it be 5 as there are 5 level variables and hence 5 restrictions in the model. I am sure the given output is correct, but I cannot get my head around k=4.
Thank you.
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ARDL Bounds Test.docx
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EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
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Joined: Tue Sep 16, 2008 5:38 pm

Re: ARDL Bounds Testing specification

Postby EViews Gareth » Tue Nov 10, 2015 12:29 pm

k is the number of independent regressors in the original equation.
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londonphd
Posts: 37
Joined: Fri Oct 23, 2015 11:39 am

Re: ARDL Bounds Testing specification

Postby londonphd » Tue Nov 10, 2015 1:12 pm

k is the number of independent regressors in the original equation.
Great! Many thanks.

Another question, I am a bit puzzled now. Which model's RSS values are then used for compute the F-stat for bounds testing? That of original model or that of the Test Equation?
Thanks!
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