The RATS Software Forum

First of all, you didn't say it, but are you doing everything in logs? It sounds like you should. (Converting to indexes merely changes the scale). The standard transformation for a price index is 100*log(..). 100*log(..) makes the responses read off directly as percentages, that is, 1.5 is 1.5%. T...

Hello, I esimated a VEC model with index variables (such as fertilizer price index, butter export price index, cpi for food, ect) because all the variables are I(1) and have cointegrating relations (all the variables are converted to their index form). I use genralised IRFs and tried to find out how...