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Question 1:
a) Explain what is a VAR giving an example both in the form of an equation and matrix. Discuss its benefits and limitations.
b) How can we estimate a VAR involving equations having a contemporaneous feedback term?
c) Distinguish between variance decomposition and impulse response functions.
Question 2:
(a) What are the two types of non-stationarity that exist and show how one of them can be made stationary?
(b) How do we test for a unit root?
(c) What does it mean when two variables are cointegrated?
(d) Using the Engle-Granger approach show how parameters can be estimated in cointegrated systems.
Students in the red/black card game had to make individual deals. How would the situation change if they could bargain collectively?
Can you explain the basic introduction of this methodology?
Hello I am a PostGrad student. Need some help in the coursework
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ear Sir/Madam, I need somebody to implement the followintg models and test: Plot the variables studied Test for a unit root of all my variables using the ADF (p) tests for the le
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