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4. Consider the following VAR(1) process where y denotes the growth in real per capita GDP and y2, is the inflation: [2]-[8.5 a) [0.5 0.3 1-1 0.0 0.22-1 b) [3²-1] Consider the effect at time t = 0, 1, ..., of a unit shock to y₁, at time t = 0. Trace the impulse-response for the next two periods. Note the shock occurs in the disturbance term (here in terms of u₁) Consider the effect at time t = 0, 1,..., of a unit shock to y2, at time t = 0. Trace the impulse-response for the next two periods (here in terms of v2).

4. Consider the following VAR(1) process where y denotes the growth in real per capita GDP and y2, is the inflation: [2]-[8.5 a) [0.5 0.3 1-1 0.0 0.22-1 b) [3²-1] Consider the effect at time t = 0, 1, ..., of a unit shock to y₁, at time t = 0. Trace the impulse-response for the next two periods. Note the shock occurs in the disturbance term (here in terms of u₁) Consider the effect at time t = 0, 1,..., of a unit shock to y2, at time t = 0. Trace the impulse-response for the next two periods (here in terms of v2).

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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4. Consider the following VAR(1) process where yıt denotes the growth in real per capita GDP and y2t is the inflation: Ylt Y2t a) b) [0.5 0.3 1-1 0.0 0.221-1. Ult Consider the effect at time t = 0, 1, ..., of a unit shock to yı, at time t = 0. Trace the impulse-response for the next two periods. Note the shock occurs in the disturbance term (here in terms of u₁1) Consider the effect at time t = 0, 1, ... , of a unit shock to y2, at time t = 0. Trace the impulse-response for the next two periods (here in terms of v21).
Transcribed Image Text:4. Consider the following VAR(1) process where yıt denotes the growth in real per capita GDP and y2t is the inflation: Ylt Y2t a) b) [0.5 0.3 1-1 0.0 0.221-1. Ult Consider the effect at time t = 0, 1, ..., of a unit shock to yı, at time t = 0. Trace the impulse-response for the next two periods. Note the shock occurs in the disturbance term (here in terms of u₁1) Consider the effect at time t = 0, 1, ... , of a unit shock to y2, at time t = 0. Trace the impulse-response for the next two periods (here in terms of v21).
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