Should I just stop at GARCH(1,1)?
Just went to look for Prof Tu Yong about my problem and she was very helpful.. Though she does not use Eviews and GARCH, she still made the point to see and discuss things out with me..
I explained to her my methodology is a modified GARCH(1,1) model, where a time varying conditional variance was added to the GARCH(1,1) model.. It was only my wishful thinking that it was just a simple adding of a term in the equation.. She explained to me that for Eviews and MatLab, we have to do decoding and recoding to the programme before we can actually run the equation.. This is tall task as the program is in c code and I have no idea what is it.. I have to understand what does the codes stand for and add in relevant code in order to run the regression.. Even if I get pass that, I still won’t know whether the modification that I made is what it was the intended for..
She did mentioned that for undergraduate dissertation, they don’t require students to have knowledge of programing.. What is required is that we use the methodology and make our dissertation robust.. At least the result will be correct, rather than doing something that end up with wrong results..
Good thing is that she mentioned that the finance paper that I was working on is a working paper as it was published on SSRN.. It sort of means that it is not confirmed yet as the author is making it better.. That paper is the author’s contribution to the current literature.. That doesn’t not mean that it is correct..
After my session, it sort of gotten me thinking.. Life as an academic is damn difficult.. It is not restricted by the knowledge you have on the topic.. It is also bounded by the level of proficiency you have on the programme you use.. This isn’t something an undergraduate can handle and should handle..
Last thing left to do would be to seek Dr Kwame’s approval.. On whether can I stop at GARCH(1,1).. But this also means that I have to make a lot of changes to my methodology and that signify more sleepless nights..
CHIONG AH~~