hello, I want to do research on "state-dependent fiscal multiplier" using forecast error to identify the fiscal policy shocks and the local projection method to estimate the impulse response of output to fiscal policy shocks using annual data from 15 countries. can you share a video or help me on how to compute forest error of government spending? I got a definition of forecasts of government spending as FEi,t=gi,t(actual)-gi,t(forecast) where gi,t= Gi,t/Yi,t is government spending as a share of GDP. i-refers to country and t refers to time.
Could you do a video showing the IRF and how to interpret them given that they do not have the percentile bands? Thank you.
Can you explain the intuition behind changing those hyper-parameters?
hello,
I want to do research on "state-dependent fiscal multiplier" using forecast error to identify the fiscal policy shocks and the local projection method to estimate the impulse response of output to fiscal policy shocks using annual data from 15 countries.
can you share a video or help me on how to compute forest error of government spending?
I got a definition of forecasts of government spending as
FEi,t=gi,t(actual)-gi,t(forecast)
where gi,t= Gi,t/Yi,t is government spending as a share of GDP. i-refers to country and t refers to time.