3.3 Estimation procedure Although the ordinary least square (OLS) approach treats regression relationship as deterministic whilst time series contain stochastic trends, the approach is preferred to other estimation techniques amongst the Maximum Likelihood (ML) and Method of Moments (MoM). This is because the least square approach produces estimates which are unbiased, efficient and
15 consistent as stated in the Gauss-Markov theorem of the classical linear regression model (CLRM). E-views 7 statistical software package was used.
