Using Impulse Response Function as a forecast tool
Posted: Mon Jun 08, 2015 4:36 pm
Hi
I'm using A VAR model to assess the impact of oil price shocks on some macroeconomic variable. Assuming that the sample period is 1990-2013, my question does the out come of Impulse Response Function with 10 years time horizon reflect impact in the future? that is, 2014-2023. Or only simulate the effect within the sample period for 10 years.
I'm using A VAR model to assess the impact of oil price shocks on some macroeconomic variable. Assuming that the sample period is 1990-2013, my question does the out come of Impulse Response Function with 10 years time horizon reflect impact in the future? that is, 2014-2023. Or only simulate the effect within the sample period for 10 years.