ARCH and GARCH models are estimated using the
A)OLS estimation method.
B)the method of maximum likelihood.
C)DOLS estimation method.
D)VAR specification.

Question

Quizplus · Accepted Answer

ARCH and GARCH models are typically estimated using the method of maximum likelihood, which involves finding the parameter values that maximize the likelihood function of the data given the model. This approach is more suitable for non-linear models like ARCH and GARCH than OLS or DOLS estimation methods. VAR specification is a different type of model and is not typically used to estimate ARCH or GARCH models.

ARCH and GARCH Models Are Estimated Using the