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A large non-Gaussian structural VAR with application to Monetary Policy

Jan Prüser

arXiv 23 Dec 2024 · Econometrics · publishedEconometrics Journal (2026)

arXiv:2412.17598 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a large structural VAR which is identified by higher moments without the need to impose economically motivated restrictions. The model scales well to higher dimensions, allowing the inclusion of a larger number of variables. We develop an efficient Gibbs sampler to estimate the model. We also present an estimator of the deviance information criterion to facilitate model comparison. Finally, we discuss how economically motivated restrictions can be added to the model. Experiments with artificial data show that the model possesses good estimation properties. Using real data we highlight the benefits of including more variables in the structural analysis. Specifically, we identify a monetary policy shock and provide empirical evidence that prices and economic output respond with a large delay to the monetary policy shock.

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67
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124
in-text mentions
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distinct cited
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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
1Romer, C. D. and Romer, D. H (2004) A new measure of monetary shocks: Derivation and implications1.000103100%
2Korobilis, D (2022) A new algorithm for structural restrictions in Bayesian vevtor autoregressions1.00083100%
3Braun, R (2023) The importance of supply and demand for oil prices: Evidence from non-gaussianity1.00053100%
4Uhlig, H (2005) What are the effects of monetary policy on output? Results from an agnostic identification procedure0.87482100%
5Chan, J., Eisenstat, E., and Yu, X (2022) Large bayesian vars with factor stochastic volatility: Identification, order invariance and structural analysis0.87452100%
6Montiel Olea, J. L., Plagborg-Mller, M., and Qian, E (2022) Svar identification from higher moments: Has the simultaneous causality problem been solved?0.87452100%
7Banbura, M., Bobeica, E., and Hernández, C. M (2023) What drives core inflation? The role of supply shocks0.73732100%
8Chan, J. C., Koop, G., and Yu, X (2024) Large order-invariant bayesian vars with stochastic volatility0.73732100%
9Lanne, M., Liu, K., and Luoto, J (2023) Identifying structural vector autoregression via leptokurtic economic shocks0.73732100%
10Antolń-Dáz, J. and Rubio-Ramŕez, J. F (2018) Narrative sign restrictions for svars0.69351100%

Showing the top 10 of 67 scored citations.