The estimated Vector AutoRegressive (VAR) model is sensitive to model misspecifications, such as omitted variables, incorrect lag-length, and excluded moving average terms, which results in biased and inconsistent parameter estimates. Furthermore, the symmetric VAR model is more likely...

Wind energy is the fastest growing renewable energy technology. Wind turbines do not produce any form of pollution and when strategically placed, it naturally blends with the natural landscape. In the long run, the cost of electricity using wind turbines is cheaper than conventional power plants...

Hedging strategies have become more and more complicated as assets being traded have become more interrelated to each other. Thus, the estimation of risks for optimal hedging does not involve only the quantification of individual volatilities but also include their pairwise correlations....

The high poverty incidence in the county is a concern that needs to be addressed by our policy makers. Official poverty statistics from the National Statistical Coordination Board (NSCB) shows that the reduction in poverty over the past two decades has been quite dismal from 38% in 1988 to 26%...

The country’s small and open economy is vulnerable to both internal and external shocks. Is it therefore important for policy makers to have timely forecasts on the movement of the country’s Gross Domestic Product (GDP), whether it will increase or decrease in the current quarter, to be able...

Frequency mismatch has been a problem in econometrics for quite some time. Many monthly economic and financial indicators are normally aggregated to match quarterly macroeconomic series such as GDP when analysed in a statistical model. However, temporal aggregation, although widely accepted, is...

Reducing hunger incidence in the country is still the major policy challenge confronting our leaders today. Statistics on hunger produced by both government and private institutions show a very slow reduction in hunger incidence over the last five years. Official data from Philippines Statistics...