Multiple Choice
What is the difference between a VEC and a VAR?
A) The VAR model is for only 2 series and VEC models accommodate 3 or more variables.
B) The VAR model is a special form of the VEC model and should be used for nonstationary series.
C) The VEC model is a special form of the VAR and should be used with cointegrated series.
D) The VAR model deals with stationary series while the VEC allows for dynamic series.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: What does VEC abbreviate?<br>A)vector error correction<br>B)variable error
Q2: When estimating a VEC model using a
Q3: What type of model provides information about
Q4: When estimating a VEC model using a
Q5: Impulse response funcitons can be difficult to
Q7: Functions that show how variables adjust to
Q8: What does VAR abbreviate?<br>A)variance auto reduction<br>B)vector autoregressive<br>C)variance
Q9: What type of model tells you whether
Q10: In which case should a VAR model
Q11: What type of model shows how series