search

AdaemmerP / lpirfs

40 stars 21 forks source link

lp_nl #37

Closed Aceampoma closed 9 months ago

Aceampoma commented 10 months ago

Hello, does regime 1 which gives values close to 0, always constitute the high regime of the switching variable and regime 2 which gives values close to 1 constitute the low regime of the switching variable? Thank you.

Aceampoma commented 10 months ago

To be clear, if the switching variable assumes a 1-low regime and a 0-high regime?

AdaemmerP commented 9 months ago

It depends on the construction of your switching variable. Look at equation (3) in the paper: https://journal.r-project.org/archive/2019/RJ-2019-052/RJ-2019-052.pdf