EconPapers    
Economics at your fingertips  
 

Methodological guide to the augmented ARDL model: step-by-step application with South Korean data

Muhammad Raees Shaik Saffarudin, Soo Khoon Goh () and Robert McNown
Additional contact information
Muhammad Raees Shaik Saffarudin: Sunway College Johor Bahru
Soo Khoon Goh: Universiti Sains Malaysia
Robert McNown: University of Colorado at Boulder

Quality & Quantity: International Journal of Methodology, 2025, vol. 59, issue 5, No 30, 4646 pages

Abstract: Abstract This paper provides a detailed, step-by-step guide for implementing the Augmented Autoregressive Distributed Lag (A-ARDL) method, focusing on the aging-income inequality nexus in South Korea. The A-ARDL method has gained popularity in fields such as energy, development, and population economics due to its enhanced robustness in testing long-run relationships. The vital contribution of the A-ARDL model is that it complements the existing two tests in the ARDL model by incorporating an extra F-test on the lagged-level of the independent variable(s), significantly reducing the risk of spurious cointegration. Despite its advantages, a common challenge in applying the A-ARDL model is the lack of easily accessible program code. Consequently, many researchers rely on automated ARDL procedures in EViews, which often omit the additional test. To that effect, this paper offers a structured, stepwise approach to applying the A-ARDL model, enabling researchers to correctly replicate, apply, and interpret their findings for more effective policy analysis.

Keywords: Augmented ARDL; Cointegration; Lagged-level of independent variable test; Step-by-step guide (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11135-025-02136-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:qualqt:v:59:y:2025:i:5:d:10.1007_s11135-025-02136-4

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11135

DOI: 10.1007/s11135-025-02136-4

Access Statistics for this article

Quality & Quantity: International Journal of Methodology is currently edited by Vittorio Capecchi

More articles in Quality & Quantity: International Journal of Methodology from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-09-28
Handle: RePEc:spr:qualqt:v:59:y:2025:i:5:d:10.1007_s11135-025-02136-4