robust option

Discussions of ARCH, GARCH, and related models
luxu1983
Posts: 61
Joined: Wed Aug 12, 2009 10:53 pm

robust option

Unread post by luxu1983 »

dear Tom
when i do garch estimation
Is QMLE estimator not efficiency when the the distribution is not normal ?
that means i should use the "robust" option?
thank you very much
TomDoan
Posts: 7814
Joined: Wed Nov 01, 2006 4:36 pm

Re: robust option

Unread post by TomDoan »

If the residuals aren't Normal, but you use the standard GARCH, then, yes, you are getting a QMLE, and an asymptotically valid covariance matrix for the coefficients is computed with the ROBUST option.
Post Reply