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- Tue Mar 03, 2020 10:27 am
- Forum: Estimation
- Topic: Bivariate model-long run restriction
- Replies: 1
- Views: 4440
Bivariate model-long run restriction
Hi People, I have to do exchange rate decomposition. I have to use bivariate model and impose long run restriction like blanchard quah (1989). The long run restriction is that in the long run the effect of nominal shock in real exchange rate is 0. So basically I have nominal and real exchange rates ...