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ConvergenceClubs (version 1.0.0)

ps_andrews_hac: Long run variance of errors

Description

Estimate long run variance of errors through Andrews' method

Usage

ps_andrews_hac(x)

Arguments

x

vector of residuals

Value

a numeric value representing the long run variance of errors

Details

This function computes the long run variance of residuals of an lm model by means of Andrews' with Quadratic Spectral kernel and fixed bandwidth. The code is an adaptation of Phillips and Sul (2007)'s code, which was written in GAUSS.

References

Phillips, P. C.; Sul, D., 2007. Transition modeling and econometric convergence tests. Econometrica 75 (6), 1771-1855.