A Guide to Autoregressive Distributed Lag Models for Impulse Response Estimations

B-Tier
Journal: Oxford Bulletin of Economics and Statistics
Year: 2022
Volume: 84
Issue: 5
Pages: 1101-1122

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We provide a guide to using autoregressive distributed lag models for impulse response estimations with an identified structural shock or an external instrument for the shock. We illustrate how specifications widely used in practice can lead to inconsistent and inefficient estimators. We further review empirical results from previous papers and show that some results appear to be statistical artefacts. We propose a simple method to avoid such a false conclusion from biases or large standard errors and obtain consistent and precise estimates.

Technical Details

RePEc Handle
repec:bla:obuest:v:84:y:2022:i:5:p:1101-1122
Journal Field
General
Author Count
2
Added to Database
2026-01-25