Dear Rats Users,
Does anyone has worked with the following paper, Fernandez-Villaverde, Rubio-Ramirez and Sargent (2005) forthcomming in AER?
It could be very usefull to incorporate it in the procedures
They develop an matrix proff for those circumstances in which the economic shocks are recoverable from the VAR disturbances.
Tom Doan, ¿could you please see the paper? http://www.econ.upenn.edu/~jesusfv/ABCD_final_7.pdf