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Author Question: One advantage of forecasts based on a VAR rather than separately forecasting the variables involved ... (Read 71 times)

hbsimmons88

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on: Jun 29, 2018
One advantage of forecasts based on a VAR rather than separately forecasting the variables involved is
 
  A) that VAR forecasts are easier to calculate.
  B) you typically have knowledge of future values of at least one of the variables involved.
  C) it can help to make the forecasts mutually consistent.
  D) that VAR involves panel data.

Question 2

The coefficients of the VAR are estimated by
 
  A) using a simultaneous estimation method such as TSLS.
  B) maximum likelihood.
  C) panel methods.
  D) estimating each of the equations by OLS.


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Carliemb17

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Answer: C

Answer to Question 2

Answer: D


hbsimmons88

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Reply 2 on: Jun 29, 2018
Gracias!

ryansturges

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Reply 3 on: Yesterday
Excellent

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