Hi everyone, I am new to STATA so I am sorry if this is a silly question. I am researching oil price shocks and was hoping that oil price shocks are followed by a decrease in real GDP. My regression
Code:
var d.RealGDP Priceofoilbarrel, lags(1/4) exog(ConsumerConfidence RealWagesWeekly Interestratediscountrate InflationRate REERExchnageRate)
That is what my model looks like. I have data from 1965 until 2010 and I didn't get the results I wanted as I have an issue with simultaneity. Do I need to run separate regressions for all of the oil price shocks. So I would do one regression for the oil price shock in the 70s and use maybe five years before and after the shock and then run a separate one from the price shock in the 2000s? Thank you for your help!