00:01
Okay, so the ardl model and its variants like pmg, mg, and dfe are essential for your research for the following reasons.
00:10
So for ardl, ardl captures both short -term and long -term effects of exchange rate fluctuations on oil prices and account for different integration levels of the data.
00:25
Now, as for pmg estimator, this assumes common long -term effects but allow for country -specific short -term dynamics, and that reflects that while countries may react differently to shocks in the short -term, they are likely to be influenced similarly by long -term economic trends.
00:51
Now, for mg estimator, it provides entirely country -specific estimates, and that would reflect unique economic conditions and policies in each countries.
01:07
For dfe estimator, so this imposes identical short -term and long -term effects across countries, useful when strong theoretical reasons suggest uniform relationships.
01:26
Now, to run these models, you can use statistical software such as eviews, stata, or r, and you can follow these steps.
01:41
So, step 1, you're going to check the stationarity.
01:49
Step 2, you determine the optimal lag length...