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The file GRANGER.XLS contains the interest rate series used to estimate the TAR and M-TAR models in Section 11.
a. Estimate the TAR and M-TAR models reported in Section 11.
b. Estimate the M-TAR model without the two insignificant coefficients.
c. Calculate the AIC and the SBC for the TAR model and the M-TAR model without the insignificant coefficients. In your calculations, be sure to adjust the two model selection criteria to allow for the fact that you estimated the threshold.
d. Calculate the multivariate AIC for the linear error correction model. How does this value compare to the multivariate AIC for the nonlinear error correction model?
I have a time series set of data of workers in motor vehicle industry from 1972-2001 as well as average weekly hours of workers in motor vehicle industry
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