**Find This Content on the Updated Version of this Blog:**

**Estimating Vector Autoregression Model with The U.S. Federal Funds Rate, Nominal Interest Rate, Exchange Rate and Industrial Production as Endogenous Variables**

**Based of the lectures of Dr. Rokon Bhuiyan, CSUF**

Once you have the time series data for these variables you need to upload them into Eviews and follow these steps:

Figure1: Select Estimate VAR from the Quick Menu

Figure 2: Here the ff-rate is the Federal Funds Rate, interest_rate is the Nominal Interest Rate, exchange_rate is the trade weighted Exchange Rate, and the ip is the Industrial Production Index for the United States

Figure 3: The EViews estimates of the VAR model with 3 lags on every variable along with the coefficient estimation, standard error of the coefficient, and the t-statistic of the coefficient.

**Choleski Decomposition of the Contemporaneous Effect Matrix and Estimation of Impulse Responses to Monetary…**

View original post 670 more words