Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

() I generated the impulse response diagrams from the VAR model with the Cholesky ordering ALGPRICE and INF. Response to Cholesky One S. D. (d.f.

image text in transcribedimage text in transcribed
() I generated the impulse response diagrams from the VAR model with the Cholesky ordering ALGPRICE and INF. Response to Cholesky One S. D. (d.f. adjusted) Innovations + 2 analytic asymptotic S.E.s Response of DGPRICE to DGPRICE In novation Response of DGPRICE to INF Innovation 05 05 .114 104 03 .02 .02 .01 .01 00 00 1 5 7 9 10 1 2 4 5 6 9 10 Response of INF to DGPRICE Innovation Response of INF to INF Innovation J.H 7.4 14 2.0 2.0 1.6 1.6 1.2 1.2 II.H 0.4 1 2 3 4 5 6 7 9 10 1 2 3 4 5 7 8 9 10What can you infer about the persistence of the shock INF on itself compared to the shock of s-LGPHICE on itself? [2] : {ij Looking at the impulse response diagrams. what can you infer about the short-run dynamic response of inflation to quSPHIrIEshock'? [2] : {n} I produced the impulse response function with the Cholesl-o,r ordering IMF and sLLTPHICE. Why do I need to produce this additional impulse response function based on a different Cholesl-o'.r ordering? [2]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capital In The Twenty-First Century

Authors: Thomas Piketty, Arthur Goldhammer

1st Edition

067443000X, 9780674430006

More Books

Students also viewed these Economics questions