(EViews10): Heteroskedasticity and Functional Forms

[@CrunchEconometrix]

I want to appreciate all my subscribers from across the globe (Africa, Asia, Europe, the Middle East, The Americas, and The Pacific). Thank you all for your support. I am encouraged by your comments, questions, likes and critiques. They keep me focussed and poised to do better. I will continue to contribute my little quota such that every student and researcher will independently analyse his/her data. My teaching approach is very practical. I adopt a do-as-I-do style. Many thanks to those who have supported me by telling others. Once again, CrunchEconometrix loves to teach, support my Channel with your subscription, likes, feedbacks and sharing my videos with your cohorts. Please do not keep me to yourself (lol) inform your friends, students and academic networks about my Channel. Tell them CrunchEconometrix breaks down the econometric jargons and teaches with simplicity. Follow me on Facebook, Twitter and Reddit. Love you all, greatly!!! 

[@nuzhatnuzhat4802]

Because your lectures were about Gujarati econometrics and this book is complicated for understand for average student so I type the topics related this book and find your lectures

[@nuzhatnuzhat4802]

Great work vary informative lectures

[@CrunchEconometrix]

Thanks for the encouraging feedback, Hashim. Deeply appreciated! Please may I know from where (location) you are reaching me?

[@warugongo11]

Very impressive Madam

[@CrunchEconometrix]

Thank you so much, Sir!

[@chikezieezenna1629]

Thank you for this insight. Please i am getting this error msg when I try the Heteroskedsaticity test "This feature requires EViews 9.5. Please contact your EViews administrator to update your license.". i am using eview 10. Please advice.

[@CrunchEconometrix]

Hi Chikezie, this is strange cos I use EViews10. I'd suggest that you post this on any EViews platform for constructive feedback. Thanks.

[@elviskwameofori4536]

1st premise, I am using Ardl. Using logged forms for my analysis, but when doing Diagnostic tests I had issues with Heteroscedasticity, hence run that using log for the dependent variable and the other variables are their normal form and was able to get a sufficient outcome. How would I report on difference? 2nd question, I am having issues with the Jarque-Bera test (Normality). How can that also be addressed since all fall under Diagnostic tests.

[@CrunchEconometrix]

Elvis, re-estimate the model at higher-order lags.

[@asenaselcenzorlu8330]

You are amazing, you made me understand what heterosdasticity is ( even though I am still not good at pronouncing it :))

[@CrunchEconometrix]

Hahahaha Münevver, you are so welcome....I still twist my tongue too!

[@alhassanabubakari6341]

Good day Doctor, please is it necessary to test for normality in ARDL model? I tested for serial correlation, heteroskedasticity, stability and normality. However I had a non-normal outcome of JB probability value of 0.000384. Please how do I correct it and would it be appropriate for me to neglect it. please help me with reference material on this issue. thank you.

[@CrunchEconometrix]

Hi Alhassan, you may downplay normality. See Geamanu (2014) - VAR analysis on FDI in Romania; Gonzalo (1994) - Five alternative methods of estimating long-run equilibrium relationships.

[@shantanughosh5037]

Mam, if we apply manually the BP test for checking heteroscedasticity in panel with the residuals of Fixed Effect model, will it be worth checking.

[@CrunchEconometrix]

Shantanu, how do you intend to "manually" check?

[@shantanughosh5037]

@@CrunchEconometrix Mam, by 'Manual' checking I refer to the use of MS Excel spreadsheet to get a solution instead going for the fancy software packages. Mam, Happy Teachers Day.

[@CrunchEconometrix]

@@shantanughosh5037 No problem, if MS Excel works for the purpose...which I doubt.