# The 2nd stage log-likelihood function for the (E)DCC GARCH

### Description

This function returns a log-likelihood of the (E)DCC-GARCH model in the 2nd step estimation.

### Usage

1 | ```
loglik.dcc2(param, dvar)
``` |

### Arguments

`param` |
initial values for the DCC parameters |

`dvar` |
a matrix of the standardised residuals |

### Value

the negative of the second stage log-likelihood

### Note

The function is used in `constrOptim`

in `dcc.estimation2`

.

### References

Engle, R.F. and K. Sheppard (2001),
“Theoretical and Empirical Properties of Dynamic
Conditional Correlation Multivariate GARCH.”
*Stern Finance Working Paper Series*
FIN-01-027 (Revised in Dec. 2001),
New York University Stern School of Business.

Engle, R.F. (2002),
“Dynamic Conditional Correlation: A Simple Class of
Multivariate GeneralizSed Autoregressive Conditional
Heteroskedasticity Models.”
*Journal of Business and Economic Statistics*
**20**, 339–350.

### See Also

`dcc.estimation`

,
`dcc.estimation2`