Estimate a var involving equations, Econometrics

Question 1:

a)  Explain what is a VAR giving an example both in the form of an equation and matrix. Discuss its benefits and limitations.

b)  How can we estimate a VAR involving equations having a contemporaneous feedback term?

c)  Distinguish between variance decomposition and impulse response functions.

Question 2:

(a) What are the two types of non-stationarity that exist and show how one of them can be made stationary?

(b) How do we test for a unit root?

(c) What does it mean when two variables are cointegrated?

(d) Using the Engle-Granger approach show how parameters can be estimated in cointegrated systems.

Posted Date: 10/23/2013 2:45:47 AM | Location : United States







Related Discussions:- Estimate a var involving equations, Assignment Help, Ask Question on Estimate a var involving equations, Get Answer, Expert's Help, Estimate a var involving equations Discussions

Write discussion on Estimate a var involving equations
Your posts are moderated
Related Questions

what meaning of limit pricing theory and its importance in industrial economics?

A perfectly competitive firm hires its machines at a constant rental rate of r = 5 euros per unit and its workers at a constant wage rate of w = 4 euros per unit. It can also sell

Greenstone Coffee is experiencing financial pressures due to increased competition for its numerous urban coffee shops. Total sales revenue has dropped by 15% and the company wishe

A bottling company has determined the number of machine breakdowns per month and their respective probabilities as given below:     Number of     Breakdowns        Probability

Consider the following equations designed to estimate  a school's test scores (Test) and the school's dropout rate (Drop). Test i = B 0 + B 1 *Parent Ed i + B 2 *school quali

Popularity vs. True Quality What determines the popularity of YouTube videos? Are the most viewed videos really the ones people like the most? What drives people choose certain


I have a project and I need help with the writing. I have the data and the SPSS regression, park test

Define McKinsey & Company's present "core competence" in terms used by Hamel & Prahalad and state how it fits with McKinsey's longer term vision. Answer) McKinsey an