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Re: RE: st: FIGARCH ado files?


From   Robert A Yaffee <[email protected]>
To   [email protected]
Subject   Re: RE: st: FIGARCH ado files?
Date   Sat, 21 Aug 2010 17:11:25 -0400

Christophe,
   The authors (1993) Ding, Granger and Engle, in their article postulating this
model,  found that the power term allowed them to 
handle long-memory processes.
    Cheers,
          Robert  

Robert A. Yaffee, Ph.D.
Research Professor
Silver School of Social Work
New York University

Biosketch: http://homepages.nyu.edu/~ray1/Biosketch2009.pdf

CV:  http://homepages.nyu.edu/~ray1/vita.pdf

----- Original Message -----
From: "Faugere, Christophe" <[email protected]>
Date: Saturday, August 21, 2010 3:26 pm
Subject: RE: st: FIGARCH ado files?
To: "[email protected]" <[email protected]>


> Robert;
> 
> Thanks. I did try saarch, tarch and GJR-garch but not aparch. I have 
> had convergence issues with some of these. I'll try that. Any 
> econometric reasons to expect the aparch may be better than other 
> threshold models?
> 
> Cheers
> 
> Christophe  
> 
> ________________________________________
> From: [email protected] 
> [[email protected]] On Behalf Of Robert A Yaffee [[email protected]]
> Sent: Saturday, August 21, 2010 3:17 PM
> To: [email protected]
> Subject: Re: st: FIGARCH ado files?
> 
> Christophe,
>   You should try the Asymmetric Power Garch if you
> have those problems first.
>   -    Robert
> 
> Robert A. Yaffee, Ph.D.
> Research Professor
> Silver School of Social Work
> New York University
> 
> Biosketch: http://homepages.nyu.edu/~ray1/Biosketch2009.pdf
> 
> CV:  http://homepages.nyu.edu/~ray1/vita.pdf
> 
> ----- Original Message -----
> From: "Faugere, Christophe" <[email protected]>
> Date: Friday, August 20, 2010 12:14 pm
> Subject: st: FIGARCH ado files?
> To: "[email protected]" <[email protected]>
> 
> 
> > Hi;
> >
> > I am running a basic GARCH(1,1) model of daily observations for the
> > SP500' earnings yield against Treasury yields. My coefficients violate
> > the stationarity condition of covariance. I tried GJR-GARCH and GARCH
> > models with various lag structures, in the end with the same problem.
> > I have two questions:
> >
> > 1) Is it legitimate to force the coefficients (L1.arch +L1.garch) to
> > sum to 1?  Even though the sum is greater (but close) to 1, say 1.02;
> > and each coefficient is significant at the 99% level. Essentially
> > assuming an IGARCH(1,1).
> >
> > 2) Does anyone know about any FIGARCH ado files available in Stata?
> >
> > Thanks
> > *
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