Consider the quarterly growth rates (percentage change a year ago) of real gross domestic products of Brazil,
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Consider the quarterly growth rates (percentage change a year ago) of real gross domestic products of Brazil, South Korea, and Israel from 1997.I to 2012.II for 62 observations. The data are from the Federal Reserve Bank of St. Louis and in the file \(q\)-rdgp-brkris.txt.
- Specify a VAR model for the three-dimensional series.
- Fit the specified model, refine it if necessary, and perform model checking. Is the model adequate? Why?
- Compute the impulse response functions (using the observed innovations) of the fitted model. State the implications of the model.
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