Ordering of VAR Variables
Posted: Tue Jul 22, 2014 10:47 am
Hello all,
I have a quick question on the ordering of VAR variables. The variables I have include govt spending, real gdp, private consumption, inflation rate and debt to gdp ratio. Is this order correct? I shall later replace govt spending with other components of govt spending for instance public consumption, public investment and defense expenditures.
The plan on my part is to ascertain which component of government spending responses the most to macroeconomic variables. Any comments on the issue will be appreciated.
I have a quick question on the ordering of VAR variables. The variables I have include govt spending, real gdp, private consumption, inflation rate and debt to gdp ratio. Is this order correct? I shall later replace govt spending with other components of govt spending for instance public consumption, public investment and defense expenditures.
The plan on my part is to ascertain which component of government spending responses the most to macroeconomic variables. Any comments on the issue will be appreciated.