The RATS Software Forum

Dear Tom, Thank you for the reply. The country has been characterized with high rate of dollarization (deposit or loan dollarization) but the country has its own currency and uses local currency for transactions and settlements. My sample uses deposit and loan dollarization rate as a proxy for dolla...

Dear Tom Doan and Forum members, I am currently working on a research project that analyzes monetary policy transmission in a dollarized economy. I would greatly appreciate your advice on how best to model dollarization within a SVAR or local projections framework using RATS. In particular, I am int...

I understood. Thank you very much!

Dear Tom,

I understood. Thank you very much.

Best regards,
Elyor

Dear Tom, Thanks a lot for the answer. You suggested that I should change identification from zero restriction to sign restriction in previous posts. I have seen two replication examples of sign restrictions: one is Uhlig (2005), and the second is the Farrant-Peersman. Which one is suitable in my ca...

Dear Tom,

I redownloaded the the Farrant-Peersman zip and run again. This time, there is not technical problem but it has not finished the procedure in 3 hours and is showing 5 hours left to finish it. What might be the reason? Please check the attached screen.

Best regards,
Elyor

Dear Tom, I updated procedures and restarted my laptop. Then, I run the code. The new pop-up window is asking for the file name mcsignrestrictions, but what is available in my directory is mcsignrestriction (I am not sure whether one letter s is important or not) then I chose the RATS procedure file...

Dear Tom, Based on your advice, I started to look at sign restriction procedure. I was going to see your replication code for Farrant and Peersman(2006), "Is the Exchange Rate a Shock Absorber or a Source of Shocks? New Empirical Evidence" but I got an error message when I ran it. I gave p...

Dear Tom, I changed identification from overidentified to just identified. As you write on the VAR book, error bands for just identified structures are similar to chapter 3.3. I followed that one to produce error bands but got error messages. Could you please check my code and help to correct errors...

Dear Tom Doan,

Thanks for your advice!!!

Dear Tom,

Thank you very much. As I understood your last answer, I should try short, long and sign restrictions. Do I understand you clearly?

Best regards,
Elyor

Dear Tom, Thank you very much for the response. I have changed lags and got almost similar results. You mentioned a technical problem related to coefficients (a45, a46, a54, a56, a64, a65) that do not have clear signs or significant values. Could you suggest how I can address this issue? How can I e...

Hi Tom, I am a beginner in using RATS. Please, I have two questions. I have 6 variable VAR system (remittances, GDP, CPI, M2, interest rate (IR), and real effective exchange rate (REER)). All variables are not stationary; they are cointegrated. I wanted to check how do GDP and CPI react when there w...