Dées, Stéphane; Holly, Sean; Pesaran, M. Hashem; … - 2007
, x it. The country
speci�c models are therafter combined to form a GVAR in which all the variables
are endogenous. The … variables, x it,
using predetermined coe� cients such as trade weights, and by noting that for
relatively small open economies …. 7).
10
ECB
Working Paper Series No 750
May 2007
and
x0t = ( p0t;y0t;q0t; S0t; L0t;pot)0;
with the following …