Dear Prof., Sven
I am very sorry to disturb you at this time. However, I need your guidance
on the additional long-run restriction in SVECs model.
I am finding it difficult to use the additional long-run restriction in the
SVEC interface. For instance, a four-variable VEC model with one
cointegrating vector requires additional 3 long-run restrictions with the 3
linear independent shocks to exactly identified the system. My questions
are;
1) Is it possible to use the total SVEC gui to do the restrictions ?
2) If not, how can I use the matrix interface in the SVEC gui to impose the
additional long-run restrictions.
3) Then, how can one place the long-run restrictions as it suite the
researcher.
Thanks.