Table 2.

Parameter estimates of the Bayesian MS-GARCH model

Quarterly dataMonthly data
GARCH with maximum likelihood estimationc0.4086.096
α0.0000.180**
β0.9990.781***
α+β0.9990.961
MS-GARCH with Bayesian estimation Regime 1 – low volatility regime
c189.3448.495
α10.2960.179
β10.3020.706
α1+β10.5980.885
p-value0.700.98
  Regime 2 – high volatility regime
c283.3199.247
α20.2520.047
β20.5910.904
α2+β20.8430.951
p-value0.570.91

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