I am currently testing the response of 3 UK stock indices to macroeconomic shocks. I have Policy shocks measured on the day of the MPC announcements, Industrial production & Unemployment & Inflation shocks (measured at the end of month) and daily Interest rate and oil shocks. The change in FTSE prices are computed daily.
For data that is not measured at daily intervals, I have 0's in place where the observations are missing. Will this be impacting the results produced by an OLS regression? the rvfplots show scattered residuals but there is many observations at the value 0.
Is there a better method for measuring the variables that occur at a lower frequency?
Really appreciate any help
Best,
Connor
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