The RATS Software Forum

Dear tom

I try to evaluate the impact of exchange rate depreciation on production and price according to Uhlig (2005) Methodologies who impose a positive constrain on fed interest rate .

i must ti impose negative constraint on exchange rate . haow i do this in winrats??

See the description on https://estima.com/ratshelp/uhligjme2005.html. The UhligAccept function uses + and - signs on the variable positions to choose between a + sign restriction and a - sign restriction.

TomDoan wrote:See the description on https://estima.com/ratshelp/uhligjme2005.html. The UhligAccept function uses + and - signs on the variable positions to choose between a + sign restriction and a - sign restriction.

Thank you Tom

I have another question :

How i can introduce exogeneous variable in VAR system in Uhlig's program??

What do you mean by "exogenous"?

TomDoan wrote:What do you mean by "exogenous"?

fOR Example , i must introduce a dummy variable in VAR system with sign restriction

Just change the VAR to include the dummy as a DETERMINISTIC. Dummies have no effect on the impulse responses, so have no effect on the sign restriction calculations.