Hello everyone,
I am writing my Bachelor's thesis.
I am doing a time series analysis and using a VECM model.
I have noticed that the number of my estimates parameters is higher than the observations. Therefore, my supervisor recommended me to add in the thesis a section in which I explain what this implies for my analysis.
However, I am bit lost. I am aware that this may make the results more unreliable and biased. But I honestly do not really know what else to add. Do you have any suggestions?
Thank you in advance for the help,
Stefano
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