I have been given 4 equations and have been told i have to generate data for a Garch-m series. I am have a lot of trouble trying to generate this series. The equations i have are:
y_t = 2.0+3.0*x_t+0.8*(h_t)**0.5+e_t,
So far this is the code i have been working on but it keeps coming up with errors
- Code: Select all
nonlin alpha0 alpha1 alpha2 alpha3 alpha4 alpha5 alpha6 alpha7
frml eq1 y =alpha0+(alpha1*x_t)+(alpha2*(h_t)**0.5)+e_t
nlls(frml = eq1) y_t 1 500 residuals
any help with this would be greatly appreciated.