Estimate a var involving equations, Econometrics

Assignment Help:

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?

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

Related Discussions:- Estimate a var involving equations

Distributed lag model, how run ditributed lag model and how select lag leng...

how run ditributed lag model and how select lag length?

Calculate correlation coefficients, This problem refers to Doughtery's Educ...

This problem refers to Doughtery's Educational Attainment and Earnings Functions (EAEF) data set, accessible through the course website. This data is a subset of the U.S. National

Regression, Consider a linear model to explain pricing of houses: Price = ß...

Consider a linear model to explain pricing of houses: Price = ß0 + ß1lotsize + ß2sqrft + ß3bdrms + u (1) E(u| lotsize, sqrft, bdrms)=0 Var (u| lotsize, sqrft, bdrms)=s2 lotsize4

Find out price elasticity of demand.., demand function(qd)=650-5p-p2 where ...

demand function(qd)=650-5p-p2 where p=10

Assignment., why do we make use of regression analysis in our econometrics ...

why do we make use of regression analysis in our econometrics analysis

Plot the appropriate short run and revenue curves, Plot the appropriate sho...

Plot the appropriate short run and revenue curves ( you may need more than one diagram, and tables) to determine at which price and output levels "Draw Ltd", would achieve:

Linear regression, How to test the linear regression?

How to test the linear regression?

Monopoly, suppose only one professor teaches economics at your university, ...

suppose only one professor teaches economics at your university, would you say that this prof is a monopolist who can exact any price from students in the form of readings assigned

National park , A chance sample of visitors to a National Park was intervie...

A chance sample of visitors to a National Park was interviewed regarding their impressions of the Park. Of 200 interviewees, 120 said that they would probably make a return visit

solutions of closely-defined customer group, Define McKinsey & Company's p...

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

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages