Table 10

Post-estimation diagnostic and stability tests for the NARDL model

Diagnostic testStatisticp-valueInference
Breusch–Godfrey LM Test (Serial Correlation)1.8420.168Fail to reject H0 → No serial correlation
ARCH Test (Heteroskedasticity)1.2760.243Fail to reject H0 → No ARCH effects
Ramsey RESET Test (Functional Form)0.9540.331Fail to reject H0 → Model correctly specified
CUSUM Stability TestParameters stable (within 5% bounds)
CUSUMSQ Stability TestVariance stable (within 5% bounds)

Note(s): H0 for Breusch–Godfrey: no serial correlation. • H0 for ARCH: homoskedastic residuals. • H0 for RESET: correct model specification

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