short and long run restrictions
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asdavies6032
- Posts: 7
- Joined: Sat Feb 13, 2010 4:13 am
short and long run restrictions
I Need some help,
I want to construct a VAR model using short and long run restictions with 8 variables (real GDP, house price index, housing starts, GDP deflator, commodity price index, federal funds rate, mortgage interest rate, and nonborrowed reserve).My policy variable is the federal funds rate. I am confused as to how to set up the short run and long run restrictions. Any help will be appreciated
Albert
I want to construct a VAR model using short and long run restictions with 8 variables (real GDP, house price index, housing starts, GDP deflator, commodity price index, federal funds rate, mortgage interest rate, and nonborrowed reserve).My policy variable is the federal funds rate. I am confused as to how to set up the short run and long run restrictions. Any help will be appreciated
Albert
Re: short and long run restrictions
Is this an economic question or a technical one? If it's the latter, what do you have as your restrictions?
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asdavies6032
- Posts: 7
- Joined: Sat Feb 13, 2010 4:13 am
Re: short and long run restrictions
thanks Tom. i have to figure out the restrictions i want to impose.
albert
albert