another blanchard quah decomp

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obicna89
Posts: 22
Joined: Thu Jun 09, 2011 11:09 am

another blanchard quah decomp

Postby obicna89 » Thu Jul 25, 2013 2:24 pm

hi!

i am using a bivariate VAR, and that means i have to impose one restriction on the long run matrix C.
but theory i am testing says i need to impose the restriction that if we are looking at the coefficents of C:
c11 c12
c21 c22
i have to impose that c12 = -c22. can i do that and how?
c11 and c21 are NA, but how can i impose aforementioned restriction?

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