Hi everyone
I am trying to write a thesis similar to the paper "One Money or Many" by Bayoumi and Eichengreen (1994) (see attached) and they used a SVAR model to look at supply and demand shocks among countries, but specifically of interest was the time and correlation of the supply and demand shocks between the countries. The theory is if countries have symmetric shocks then they would be good candidates for a currency union, and asymmetric shocks then they would be bad candidates. In the attached paper, I would like to replicate table 5 and 6. The correlation and the correlation matrix itself I can do in excel, but how do i get the information about the supply and demand shocks out of stata so I can analyze their correlation? There should be some sort of time-series line of supply shocks, and of demand shocks that I can get, then I would look at the correlation between each country's supply shocks and demand shocks. I hope I am being clear.
The code I use so far is
Thank you very much.
PS sorry if I didn't follow any posting guidelines correctly this is just my first post.
I am trying to write a thesis similar to the paper "One Money or Many" by Bayoumi and Eichengreen (1994) (see attached) and they used a SVAR model to look at supply and demand shocks among countries, but specifically of interest was the time and correlation of the supply and demand shocks between the countries. The theory is if countries have symmetric shocks then they would be good candidates for a currency union, and asymmetric shocks then they would be bad candidates. In the attached paper, I would like to replicate table 5 and 6. The correlation and the correlation matrix itself I can do in excel, but how do i get the information about the supply and demand shocks out of stata so I can analyze their correlation? There should be some sort of time-series line of supply shocks, and of demand shocks that I can get, then I would look at the correlation between each country's supply shocks and demand shocks. I hope I am being clear.
The code I use so far is
Code:
import excel "C:\Users\Administrator\Desktop\Stata+File.xlsx", sheet("Sheet2") firstrow
destring Year, replace
tsset Year
matrix lr1 = (.,0\.,.)
matrix list lr1
svar CanadaGDP CanadaDef, lags(1) lreq(lr1)
svar AustraliaGDP AustraliaDef, lags(1) lreq(lr1)
PS sorry if I didn't follow any posting guidelines correctly this is just my first post.
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