Table 3.

ARCH model

Dependent variable: log of real exchange rate (LRER)
Method: ML - ARCH (Marquardt) - Normal distribution
GARCH = C(6) + C(7)*RESID(−1)^2 + C(8)*GARCH(−1)
Mean equation
	Coefficient	Std.Error	z-Statistic	Prob
C	−3.329	13.792	−0.241	0.809
LPROD	0.791	0.2726	2.901	0.000
LTO	−0.056	0.092	−0.613	0.407
LTOT	0.508	0.091	5.534	0.000
LGEX	−0.107	0.141	−2.369	0.017
Variance equation
C	0.996	0.090	11.044	0.000
RESID(−1)^2	−0.160	0.001	−103.234	0.000
GARCH(−1)	1.137	0.011	94.975	0.000
Statistical tests
R-squared	0.753	Mean dependent var		45.818
Adjusted R squared	0.678	S.D. dependent var		14.240
S.E. of regression	8.075	Akaike info criterion		6.387
Sum squared resid	1499.796	Schwarz criterion		6.757
Log likelihood	−91.000	F-statistic		10.042
Durbin-Watson stat	1.973	Prob(F-statistic)		0.000