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Posted: **Wed Jan 25, 2012 1:49 pm**

Dear all
I have a question about the starting coefficient values of the iterative process in a univariate GARCH model.The manual does not provide sufficient information about this topic.
What does the OLS/TSLS value indication option mean?
What happens if i select another option such as 0.8* OLS/TSLS , 0.5* OLS/TSLS, 0.3* OLS/TSLS, or zero?
How this alternative selection of starting value would change my results?

Regards
tom

Posted: **Wed Jan 25, 2012 2:17 pm**

I think it is somewhat self explanatory. Ordinary Least Squares is performed first of all to generate a set of coefficients. These are then used as starting values. If you select the 0.8*OLS option, then they are multiplied by 0.8 before using them as starting values.

Posted: **Thu Jan 26, 2012 3:20 am**

I guess im fully covered
Thanks for the reply
Regards
Thomas

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Starting values in Univariate GARCH models

Starting values in Univariate GARCH models

Re: Starting values in Univariate GARCH models

Re: Starting values in Univariate GARCH models