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2. (30 points) Joe estimates a structural VAR using output (y), money (m), and inflation (i) such that the contemporaneo
Posted: Thu May 26, 2022 7:43 am
by answerhappygod
- 2 30 Points Joe Estimates A Structural Var Using Output Y Money M And Inflation I Such That The Contemporaneo 1 (70.2 KiB) Viewed 19 times
2. (30 points) Joe estimates a structural VAR using output (y), money (m), and inflation (i) such that the contemporaneous relationships among the variables are: 1 Uyt Cyt 0-6:9(0) 1 Uit eit = α32 Umt emt a31 where eyt, emt, eit are the regression residual from the yt, mt, and it equations, and Uyt, Umt, Uit are the structural shocks to yt, mɩ, and it, respectively. Is this set of economic restrictions plausible? Provide a plausible economic interpretation of this set of restrictions.