EViews.com

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.

k is the number of independent regressors in the original equation.

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!