Below is a listing of many of the key features supported by RATS. Please note that RATS is designed to be a
very powerful and flexible program, so there is no way we can list all of its capabilities here. If, after
looking over this list, you are not sure that RATS can do what you need, just ask us. You can
e-mail us at [email protected] and we’ll do our best to answer your question.

Statistical Methods

Estimation Techniques

• Multiple regressions including stepwise
• Regression with autoregressive errors
• Heteroscedasticity/serial-correlation correction, including Newey-West
• Non-linear least squares
• Two-stage least squares for linear, non-linear, and autocorrelated models
• Seemingly unrelated regressions and three-stage least squares
• Non-linear systems estimation
• Generalized Method of Moments
• Maximum likelihood estimation
• Constrained optimization
• Extensive built-in hypothesis testing capabilities.
• Pre-written procedures for a huge variety of other tests, including unit-root, stability, and much more
• Limited and discrete dependent variable models: logit, probit, censored/truncated (Tobit), count models
• Panel data support, including fixed and random effects estimators
• Non-parametric regressions
• Kernel density estimation
• Robust estimation
• Recursive least squares
• State-space models, including Kalman filtering and smoothing, simulations, and optimal control models
• Neural network models
• Linear and quadratic programming
• Dynamic Stochastic General Equilibrium (DSGE) models

Time Series Procedures

• Easy to specify lags and leads for time-series model estimation and analysis
• ARIMA and ARMAX models including multiplicative seasonal models; support for arbitrary lag structures
• Transfer function/intervention models
• Error correction models
• Kalman filter
• Spectral analysis

Forecasting

• Time series models
• Regression models
• Exponential smoothing
• Static or dynamic forecasts
• Simultaneous equation models (unlimited number of equations)
• Simulations with random or user-supplied shocks
• Forecast performance statistics, including Theil U statistics

Vector Autoregressions (VARs)

• Unmatched support for VAR models
• Error Correction models
• Structural VARs. Choice of factorizations, including estimating a factor matrix from a covariance matrix model
• Impulse responses, with Monte Carlo and Importance Sampling techniques for standard error bands.
• Forecasting
• Variance decomposition
• Historical decomposition
• Extensive hypothesis testing tools
• CATS 2.0 add-on provides industry-leading cointegration analysis

ARCH and GARCH Models

• Univariate and multivariate, including BEKK, diagonal, CC, DCC, and Vech multivariate models
• Support for GARCH-in-mean models
• Additional exogenous variables in mean and/or variance equations
• Normal, t and GED distributions
• Exponential and Asymmetric models
• Robust standard errors

Working With Data

Data Entry

• Menu-driven Data Wizards for reading in data
• Reads and writes Excel® files (including Excel 2007), text files, Stata®, Eviews®, Matlab®, Haver databases, and other formats
• Pro version supports SQL/ODBC access, online access to the FRED® database, CRSP® data, and more
• On-screen data viewer and editor, with point-and-click graphing and statistics tools
• Can handle virtually any data frequency, including daily, weekly, intra-day, and panel data
• Can automatically compact or expand data to different frequencies
• RATS data file format is fast and easy, supports all
  frequencies, and allows you to store series of different frequencies on
  the same file

Data Transformations

• Flexible transformations with algebraic formulas
• Easy to create trend series, seasonal, and time period dummies
• Extensive filtering operations, including Hodrick-Prescott, Henderson, Spencer, and custom filters
• Supports regular, seasonal, and fractional differencing

Graphics

• Time series graphics
• X-Y scatter plots
• Dual-scale graphs
• Box plots
• Contour graphs
• Ability to arrange multiple graphs on a single page
• Copy-and-paste graphs into other applications
• Export graphs to many formats, including PostScript and Windows Metafile
• User can customize attributes such as line thickness, colors and grayscale levels, and fill patterns

Interface

Interactive Mode Environment

• Text-editor based
• Point-and-click “wizards” for many tasks, greatly enhancing ease-of-use
• Saved programs can be re-run with just a few mouse clicks
• Designed so that you can reproduce results, output, and
  graphs easily and accurately (a critical but often overlooked
  requirement for producing reliable, publication-quality results)
• True multiple window support. Simultaneously view your input
  commands and output, spreadsheet-style “report” windows, graphs, and
  more

Programmability

• Extensive looping capabilities and support for applying
  operations to lists of variables make it possible to automate many
  repetitive tasks
• You can write procedures, which can perform complex tasks with a single instruction, and write your own callable functions.
• A library of procedures written by RATS users from around the world is available free of charge on our web site
• A variety of interface-related instructions allow you to create your own drop-down menus, custom dialog boxes, and more

Report Capabilities

• Strong focus on making it easy to get results easily and accurately into documents or other applications.
• Tables of output can be viewed in Report Windows, for easy exporting or copying-and-pasting into other applications.
• Powerful report-generation features for constructing and exporting your own tables of information.
• Easy control over displayed precision in output
• TeX: Support for exporting TeX tables