[R] How the residuals are calculated in a fitted ARCH(1) model.

Shing Hing Man matmsh at yahoo.com
Tue Sep 7 00:11:03 CEST 2004

I have used garch in package tseries to fit an ARCH(1)
   X_{t} = sigma_{t} e_{t}, where e_{t} ~ N(0,1)
   sigma_{t}^2 = b0 + b1*X_{t-1}^2 
to a set of data.

Can anyone please tell me  how the residuals are
At first I thought the residuals are the usual
when  we do linear regression X_{t}^2 on X_{t-1}^2.  

Thanks in advance for your assistance !

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