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Author Question: You can determine the lag lengths in a VAR A) by using confidence intervals. B) by using ... (Read 72 times)

Bernana

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on: Jun 29, 2018
You can determine the lag lengths in a VAR
 
  A) by using confidence intervals.
  B) by using critical values from the standard normal table.
  C) by using either F-tests or information criteria.
  D) with the help from economic theory and institutional knowledge.

Question 2

The biggest conceptual difference between using VARs for forecasting and using them for structural modeling is that
 
  A) you need to use the Granger causality test for structural modeling.
  B) structural modeling requires very specific assumptions derived from economic theory and institutional knowledge of what is exogenous and what is not.
  C) you can no longer use the information criteria to decide on the lag length.
  D) structural modeling only allows a maximum of three equations in the VAR.


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Missbam101

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

Answer: C

Answer to Question 2

Answer: B


Bernana

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Reply 2 on: Jun 29, 2018
Wow, this really help

sultansheikh

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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