Question: Refer to any statistical package and estimate the impulse response function for a period of up to 8 lags for the VAR model that you

Refer to any statistical package and estimate the impulse response function for a period of up to 8 lags for the VAR model that you developed in Exercise 22.16.

In exercise 22.17

Repeat Exercise 22.16, using the data on LDIVIDENDS and LCP.

In exercise 22.16

Using the data on LPCE and LDPI introduced in Section 21.1 (see the book’s website for the actual data), develop a bivariate VAR model for the period 1970–I to 2006–IV. Use this model to forecast the values of these variables for the four quarters of 2007 and compare the forecast values with the actual values given in the dataset.

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