Neural Networks and Rules-based Systems used to Find Rational and Scientific Correlations between being Here and Now with Afterlife Conditions
Neural Networks and Rules-based Systems used to Find Rational and
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This paper is an investigation of the test of unit roots with trend break functions without a priori information in some selected macroeconomic variables in Nigeria. These variables are interest rate, inflation rate, exchange rate, real gross domestic product, and unemployment rate. Specifically, we employed the extended Augmented Dickey-Fuller test through innovational and additive outlier models. The truncation parameters were selected using the t-sig and F-sig general to specific recursive techniques. Unknown breakpoints were observed, which indicates a strong connection with the data. These dates represent critical periods of policy changes by the government and external shocks. The unit-root tests with trend functions suggest that structural breaks in the macroeconomic variable series are very important and significant when formulating economic policies. The breakpoints can be included in a VAR model as deterministic terms to further improve the forecast/prediction power without affecting the asymptotic properties of the test statistics involved in the analysis.
bada_olatunbosun. 2021. \u201cBreakpoint Unit Root Tests on Select Macroeconomic Variables in Nigeria\u201d. Global Journal of Science Frontier Research - F: Mathematics & Decision GJSFR-F Volume 21 (GJSFR Volume 21 Issue F2): .
Crossref Journal DOI 10.17406/GJSFR
Print ISSN 0975-5896
e-ISSN 2249-4626
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Total Score: 102
Country: Unknown
Subject: Global Journal of Science Frontier Research - F: Mathematics & Decision
Authors: Bada Olatunbosun, Alabi Nurudeen Olawale (PhD/Dr. count: 0)
View Count (all-time): 142
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Publish Date: 2021 04, Fri
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This paper is an investigation of the test of unit roots with trend break functions without a priori information in some selected macroeconomic variables in Nigeria. These variables are interest rate, inflation rate, exchange rate, real gross domestic product, and unemployment rate. Specifically, we employed the extended Augmented Dickey-Fuller test through innovational and additive outlier models. The truncation parameters were selected using the t-sig and F-sig general to specific recursive techniques. Unknown breakpoints were observed, which indicates a strong connection with the data. These dates represent critical periods of policy changes by the government and external shocks. The unit-root tests with trend functions suggest that structural breaks in the macroeconomic variable series are very important and significant when formulating economic policies. The breakpoints can be included in a VAR model as deterministic terms to further improve the forecast/prediction power without affecting the asymptotic properties of the test statistics involved in the analysis.
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