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Simple VAR and BVAR

Code and Data for final paper in applied econometrics at ENSAE 2020

These files replicate the results in “Anticipation of an Interest Rate Shockand Monetary Policy in the Eurozone” By Aymeric Lachaux, Jung Hyun Kim

May 17, 2020


Prerequisites These files require a working installation of R and Matlab.


Replication

The plots in the paper can be replicated by .R using the attached saved files.

For a full replication for various VAR models: first) run VAR_KIM.R use IRF_function.R to call "ellen" function second) run BVAR_KIM.R use IRF_function.R to call "ellen" function


File Structure

data_eurozone.R:

The code merge each input to create the dataset. 

Detailed procedures are contained inside this code file.

input:
	- interest_rate.xlsx
	- inflation.xlsx
		- gdp_real.xlsx
	 - gdp_potential.xlsx

output:

	if do_write:
		- data_eurozone.csv

VAR_KIM.R BVAR_KIM.R

This script estimates VAR and BVAR.

input:
	- data_eurozone.csv
	
output:
	- Forecasted values (ex.P6Q, R2Q, Y4Q, ....)

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