Hello!
I tried to replicate Blanchard and Quah (1989). I computed a structural IRF after the SVAR model. The table shows that the magnitude of the Structure IRF is correct. However, its sign is opposite to the paper's result. I don't know why this will happen. Did Stata impose a negative shock? It would really help, thank you!
I tried to replicate Blanchard and Quah (1989). I computed a structural IRF after the SVAR model. The table shows that the magnitude of the Structure IRF is correct. However, its sign is opposite to the paper's result. I don't know why this will happen. Did Stata impose a negative shock? It would really help, thank you!
