PROCESSING

OF
DATA
Produced by:

Aljon Del Rosario

In partnership with:
Step 1: Open EViews and prayCHAR!

Step 2: Open the modified excel file banks by semis, na nasa

shared folder natin sa GDrive, as a foreign file.
Step 3: Next ka lang next hanggang makarating ka sa Excel Read -
step 3 of 3, then click Finish with confidence! Be sure same options
as pictured below dated panel, crossed: bank, date series:year :)

Note:

Panel data, also known as longitudinal data or cross-sectional time series data in some special
cases, is data that is derived from a (usually small) number of observations over time on a
(usually large) number of cross-sectional units like individuals, households, firms, or governments.

In the disciplines of econometrics and statistics, panel data refers to multi-dimensional data that
generally involves measurements over some period of time.

As such, panel data consists of researcher's observations of numerous phenomena that were
collected over several time periods for the same group of units or entities. For example, a panel
data set may be one that follows a given sample of individuals over time and records
observations or information on each individual in the sample.

Source: https://www.thoughtco.com/panel-data-definition-in-economic-research-1147034
Click mo link to read more tungkol dyan in case wanna know better, lamang ang may alam!
Step 4: TESTING FOR COINTEGRATION:
Click Quick>>Group Statistics>>Johansen Cointegration Test

Additional note:

Follow nyo step ni Hossain, yung video sa FMOLS na sinend ko, eto link:
https://www.youtube.com/watch?v=0tDhnYimUeU&t=43s

Ganito order nung series no para uniform tayo lahat sa presentation dependent variable first
which yung FP item then yung independent variables/regressors, ganyan pagkakasunodsunod:
Pedroni yung gagamitin natin pang-test nung cointegration tas tatlo yan na
specification, gagawin lahat tapos dapat makapasa sya sa test in majority(2/3
overall).

Ganito yung settings as pictured:

Note: Di na natin gagamitin si Kao kasi nag-error sya because apparently Kao
deals with pooled data where iba iba independent variables between cross
sections. Kapag rinun may lalabas na error near singular matrix dahil yun
don. Pedroni lang compatible kasi yung data natin grouped panel data sya
wherein same same lang yung GDP INF INT UR BOT DTG, across banks(crossed).
You know what I mean bro/sis? You should.
TESTING FOR COINTEGRATION:

Count count lang guys! Keep on counting mararating din natin ang
NIRVANA. Rejected if Prob. is > .05.

Ayan bessy pasado sya kasi 8/11 accepted which is majority.

Celebrate! Char!
Step 5: ESTIMATING THE EQUATION:
Click Quick>>Estimate Equation>>Go bessy!
Gagawin lang ito if pasado sya sa test.

So FMOLS na yung gagamitin natin instead of DOLS kasi as discovered to utilize

DOLS kailangan ng mas malawak pang observations para mamonitor leads
and lags. Same lang naman sila kaibahan lang ni FMOLS automatic estimation
ng leads and lags dun sa DOLS pwede mo ispecify number of leads and lags.
Step 6: ANALYZE AND INTERPRET THE RESULTS:
Corroborate your findings with related literatures and
economic principles.

Don't forget na tingnan yung probability kasi that would be your basis to tell if
significantly related ba yung variable sa may FP items then dun mo palang
magagamit yung coefficient in discussion.