• Media type: Report; E-Book
  • Title: Identification of vector autoregressive models with nonlinear contemporaneous structure
  • Contributor: Cordoni, Francesco [Author]; Dorémus, Nicolas [Author]; Moneta, Alessio [Author]
  • Published: Pisa: Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM), 2024
  • Language: English
  • Keywords: Impulse response functions ; C52 ; C32 ; Causal Discovery ; Additive Noise Models ; Structural VAR models ; E52 ; Nonlinearity
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  • Description: We propose a statistical identification procedure for recursive structural vector autoregressive (VAR) models that present a nonlinear dependence (at least) at the contemporaneous level. By applying and adapting results from the literature on causal discovery with continuous additive noise models, we show that, under certain conditions, a large class of structural VAR models is identifiable. We spell out these specific conditions and propose a scheme for the estimation of structural impulse response functions in a nonlinear setting. We assess the performance of this scheme in a simulation experiment. Finally, we apply it in a study on the effects of the macroeconomic shocks that propagate through the economy, allowing for asymmetry between responses from positive and negative impulses.
  • Access State: Open Access