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About Bjornland Lecture (PHD Course) SVAR
This document provides an overview and motivation for using structural vector autoregression (SVAR) models. It discusses: 1) SVARs can be used to study how economies respond to different shocks and the contribution of shocks to business cycles. However, identification is challenging due to simultaneity. 2) Traditional simultaneous equation models (SEMs) treated some variables like monetary policy as exogenous, but this assumption is invalid if policy responds endogenously. SVARs assume orthogonality of structural disturbances to help with identification. 3) While SEMs and SVARs can both be represented as linear stochastic difference equations, SVARs typically assume diagonal variance of structural shocks for identification,
Detailed Information
| Author: | ['Anonymous O69Uk7'] |
|---|---|
| Publication Year: | 2012 |
| Pages: | 17 |
| Language: | English |
| Format: | |
| Price: | FREE |
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