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?

(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.


Related Discussions:- Estimate a var involving equations

Methodology, What methodology will be suitable to use for a doctoral resea...

What methodology will be suitable to use for a doctoral research proposal thesis(The impact of persistent poverty on rural urban migration in Nigeria)?

Replication of the work of a published paper, Hi I am currently working on ...

Hi I am currently working on my econometrics coursework which is to replicate a published paper. I was given the same data set as the paper and suppose to get the same answer as th

Break-even, how to calculate equilibrium quantity and price

how to calculate equilibrium quantity and price

Econometric techniques analyse daily prices, Choose a share from a market s...

Choose a share from a market such as LSE, NYSE, NASDAQ, etc. [Data sources could be Datastream, Google Finance or others]. Prepare a report which involves the following aspects:

Crude oil, A shok question #Minimum 100 words accepted# when did...

A shok question #Minimum 100 words accepted# when did the most recent shock to the crude oil market occur

Macro econometrics.., (b) Suppose that the initial conditions are as follow...

(b) Suppose that the initial conditions are as follows: y0 = 0 and et = 0 for t= 0. Impose the initial conditions in order to find the general solution.

The Role of Labor, Which of the following is an example of derived demand?

Which of the following is an example of derived demand?

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:

Correlation, what are the uses of correlation in economics?

what are the uses of correlation in economics?

SURVIVOR ISLAND.., DISCUSS THE CENTRAL ECONOMIC PROBLEM FACING THIS GROUP O...

DISCUSS THE CENTRAL ECONOMIC PROBLEM FACING THIS GROUP OF SURVIVORS

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd