THE COMBINATORIAL GENERATION AND THE MATRIX ELIMINATION MODEL FOR THE LONG-RUN DIAGNOSTIC STABILITY OF AN AUTOREGRESSIVE DISTRIBUTED LAG (ARDL) MODEL.
EGUASA, O., MBEGBU, J. I.AND OBADONI, J.
ABSTRACT
This study examines the long – run stability of an Autoregressive Distributed Lag (ARDL) model with intercept and no constant trend, using quarterly data from CBN annual statistical bulletin that span from 1999Q1 to 2011Q2 and 2000Q1 to 2012Q4. The parameters of the long – run stability of ARDL model are not all statistically significant in their respective p – values and as such cannot be totally relied upon for statistical estimation. Then, we proposed a matrix elimination model which is motivated by the p – values of the…