New log-GARCH model simplifies financial volatility modeling for widespread use
The log-GARCH model is a useful tool for understanding economic uncertainty and financial volatility. It uses an exponential formula to ensure positive results and can handle outliers well. The model can be represented in a way that makes it easy to estimate using common software. The researchers outline how to use the model for single and multiple variables, and provide practical tips for implementation. The findings suggest that the log-GARCH model is a versatile and effective tool for analyzing and predicting financial data.