Hello everyone,
I'm interested in adding moderation and squared terms in my PVAR model. The interaction variable is created using 2 variables that are already in the model, and is placed inside as an endogenous variable. Same thing for squared effects.
My questions are:
Can i do it this way?
What about if i want to have an interaction between a squared term and a moderation effect?
How would I interpret the impulse response functions (IRFs)?
Any other tips or thoughts are welcome.
Please let me know if you require more information
I'm interested in adding moderation and squared terms in my PVAR model. The interaction variable is created using 2 variables that are already in the model, and is placed inside as an endogenous variable. Same thing for squared effects.
My questions are:
Can i do it this way?
What about if i want to have an interaction between a squared term and a moderation effect?
How would I interpret the impulse response functions (IRFs)?
Any other tips or thoughts are welcome.
Please let me know if you require more information
