Delta-method inference for a class of set-identified SVARs

A-Tier
Journal: Journal of Econometrics
Year: 2018
Volume: 203
Issue: 2
Pages: 316-327

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

We study vector autoregressions that impose equality and/or inequality restrictions to set-identify the dynamic responses to a single structural shock. We make three contributions. First, we present an algorithm to compute the largest and smallest value that an impulse-response coefficient can attain over its identified set. Second, we provide conditions under which these largest and smallest values are directionally differentiable functions of the model’s reduced-form parameters. Third, we propose a delta-method approach to conduct inference about the structural impulse-response coefficients. We use our results to assess the effects of the announcement of the Quantitative Easing program in August 2010.

Technical Details

RePEc Handle
repec:eee:econom:v:203:y:2018:i:2:p:316-327
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-25