Hello,
I am trying to estimate the following model (see attached image). Where Y* denotes foreign observable variables and F denotes unobservable domestic factors. Because I would like to study the transmission of a large country to a small country, I set theta_12 = 0; so domestic factors do not affect foreign observable variables.
My question is: is it possible to set this restriction (theta_12=0) with EViews current FAVAR Add-in?
Many thanks.
FAVAR: two-block model
Moderators: EViews Gareth, EViews Moderator, EViews Esther
FAVAR: two-block model
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Re: FAVAR: two-block model
Hello,
No, it is not possible set this restriction. But I will try to include this kind restriction if time permits
No, it is not possible set this restriction. But I will try to include this kind restriction if time permits
Re: FAVAR: two-block model
Thank you so much for your response, really valuable.
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