Hello,
I hope you are doing well.
I am currently working on the estimations for my master's thesis, focusing on a panel of 8 countries from 1990 to 2022. I would appreciate your feedback on the following steps that I have followed:
• Firstly, I conducted a simple regression and VIF estimation to determine the correlations between the variables.
• Next, I performed stationarity tests. Since the majority of variables were not stationary, I conducted the KAO and PEDRONI cointegration tests, which revealed the existence of long-term relationships.
• Based on these results, I estimated FMOLS and DOLS, but I am unsure how to choose between the two. Could you please assist me with this?
• Finally, I plan to conduct tests for heteroskedasticity, autocorrelation, and normality.
What do you think of the overall procedure? Your feedback is highly appreciated.
I hope you are doing well.
I am currently working on the estimations for my master's thesis, focusing on a panel of 8 countries from 1990 to 2022. I would appreciate your feedback on the following steps that I have followed:
• Firstly, I conducted a simple regression and VIF estimation to determine the correlations between the variables.
• Next, I performed stationarity tests. Since the majority of variables were not stationary, I conducted the KAO and PEDRONI cointegration tests, which revealed the existence of long-term relationships.
• Based on these results, I estimated FMOLS and DOLS, but I am unsure how to choose between the two. Could you please assist me with this?
• Finally, I plan to conduct tests for heteroskedasticity, autocorrelation, and normality.
What do you think of the overall procedure? Your feedback is highly appreciated.
