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# http://www.eviews.com/EViews7/ev7eccomp_n.

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## EViews 7 New Econometrics and Statistics: Computation

EViews 7 features a number of additions and improvements to its toolbox of basic statistical procedures. Among the highlights are new tools for interpolation, whitening regression, long-run covariance calculation, variance ratio testing, and single-equation cointegration testing.

Interpolation
EViews 7 now offers built-in interpolation series to fill in missing values within a series. EViews offers a number of different algorithms for performing the interpolation: inear, og- inear, the !atmull-"om #pline, and the !ardinal #pline.

Whitening
EViews now offers eas\$-to-use tools for whitening a series or group of series using A" or VA" regressions, respectivel\$. %hitening can be performed with or without a constant and row weights, using a fixed or infocriterion based lag selection. &he coefficients of the whitening regression ma\$ be saved.

Long-run Covariances
'ou ma\$ now compute estimates of the long-run variance of a series or the long-run covariance matrix of a group of series. 'ou will find this feature in the View menu of a series or a group ob(ect.

EViews provides powerful, eas\$-to-use tools for computing, displa\$ing, and saving the long-run covariance )variance* matrix of a single series or all of the series in a group ob(ect. 'ou ma\$ compute s\$mmetric or one-sided long-run covariances using nonparametric +ernel ),ewe\$-%est -./7, Andrews -..-*, parametric VA"0A! )1en 0aan and evin -..7*, and prewhitened +ernel )Andrews and 2onahan -..3* methods. 4n addition, EViews supports Andrews )-..-* and ,ewe\$-%est )-..5* automatic bandwidth selection methods for +ernel estimators, and information criteria based lag length selection methods for VA"0A! and prewhitening estimation.

6\$ default, EViews will estimate the s\$mmetric long-run covariance matrix using a non-parametric +ernel estimator with a 6artlett +ernel and a real-valued bandwidth determined solel\$ using the number of observations. &he data will be centered )b\$ subtracting off means* prior to computing the +ernel covariance estimator, but no other pre-whitening will be performed. &he results will onl\$ be displa\$ed in the series or group window. 'ou ma\$ use the dialog to change these settings.

## Variance Ratio Testing

EViews 7 now has built-in variance ratio testing. &he variance ratio test view allows \$ou to perform the o and 2ac7inla\$ variance ratio test to determine whether differences in a series are uncorrelated, or follow a random wal+ or martingale propert\$.

EViews provides a range of testing options. 'ou ma\$ perform the o and 2ac7inla\$ variance ratio test for homos+edastic and heteros+edastic random wal+s, using the as\$mptotic normal distribution ) o and 2ac7inla\$, -.//* or wild bootstrap )7im, 3889* to evaluate statistical significance. 4n addition, \$ou ma\$ compute the ran+, ran+-score, or sign-based forms of the test )%right, 3888*, with bootstrap evaluation of significance. 4n addition, EViews offers %ald and multiple comparison variance ratio tests )"ichardson and #mith, -..-: !how and 1enning, -..;*, so \$ou ma\$ perform (oint tests of the variance ratio restriction for several intervals.

Cointegration Tests
&o supplement the existing <ohansen cointegration tests, EViews 7 offers support for Engle and =ranger )-./7* and >hillips and ?uliaris )-..8* residual-based tests, 0ansen@s )-..3b* instabilit\$ test, and >ar+@s )-..3* added variables test.

&he residual based tests ma\$ be computed as a View of a =roup ob(ect, or as a diagnostic view for an equation estimated using one of the cointegrating regression techniques.