Question: Describe your new sample. Estimate a bivariate VAR for the price growth for MSA1 (or MSA2) and MS A3. Choose the lag structure optimally. Comment

Describe your new sample. Estimate a bivariate VAR for the price growth for MSA1 (or MSA2) and MS A3. Choose the lag structure optimally. Comment on the estimation results. Assess whether there is Granger-causality between both series. Construct the appropriate statistical tests, choose the size of the test, and explain your decision.

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We choose MSA 3 as AlbanySchenectadyTroy in New York which is in the east coast and geographically very distant from MSA 1 San FranciscoOaklandFremont ... View full answer

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