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Identification by non-Gaussianity in structural threshold and smooth transition vector autoregressive models

Savi Virolainen

arXiv 30 Apr 2024 · Econometrics · publishedEconometric Reviews (2026) · 1 citations (OpenAlex)

arXiv:2404.19707 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We show that structural smooth transition vector autoregressive models are statistically identified if the shocks are mutually independent and at most one of them is Gaussian. This extends a known identification result for linear structural vector autoregressions to a time-varying impact matrix. We also propose an estimation method, show how a blended identification strategy can be adopted to address weak identification, and establish a sufficient condition for ergodic stationarity. The introduced methods are implemented in the accompanying R package sstvars. Our empirical application finds that a positive climate policy uncertainty shock reduces production and raises inflation under both low and high economic policy uncertainty, but its effects, particularly on inflation, are stronger during the latter.

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33
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Huang B., Punzi M (2024) Macroeconomic impact of environmental policy uncertainty and monetary policy implications1.00093100%
2Khalil M., Strobel F (2023) Capital reallocation under climate policy uncertainty1.00093100%
3Fried S., Novan K., Peterman W (2022) Climate policy transition risk and the macroeconomy1.00053100%
4Lanne M., Meitz M., Saikkonen P (2017) Identification and estimation of non-Gaussian structural vector autoregressions0.95315587%
5Virolainen S (2025) sstvars: Toolkit for reduced form and structural smooth transition vector autoregressive models0.8435560%
6Baker S., Bloom N., Davis S (2016) Measuring economic policy uncertainty0.84333100%
7Carriero A., Marcellino M., Tornese T (2024) Blended identification in structural VARs0.84333100%
8Gavriilidis K (2021) Measuring climate policy uncertainty. Available at SSRN: https://ssrn.com/abstract=38473880.84333100%
9Hubrich K., Teräsvirta T (2013) Thresholds and smooth transitions in vector autoregressive models0.7373367%
10Tsay R (1998) Testing and modeling multivariate threshold models0.7373367%

Showing the top 10 of 33 scored citations.