It is very common to see reported in applied econometric literature time series regression equations with an apparently high degree of fit, as measured by the coefficient of multiple correlation R2 or the corrected coefficient R2, but with an extremely low value for the Durbin-Watson statistic. We find it very curious that whereas virtually every textbook on econometric methodology contains exp...

We recall briefly the covariance driven subspace identification method with some illustrative results. One of the well-known problems in most of identification methods is that we get spurious (computational) modes together with the true ones. In this paper we present an example of such a situation and we do different simulations with Scilab to compare the behavior of 2 modes and define what is ...