Hello, I am working with pvar model, where I would like to see the response of (gdp cpi credit) to impulse( policy rate) and exogenous variables (US gdp). My code works for endogenous variables but not when I include exogenous variables. I now I am supposed to use DM for exogenous variables. I tried all combinations but it doesn't seem to work. The reported error is either "invalid" or policy rate is not exogenous. please help.
* Estimate pVAR models
pvar rgdplog crelog cpilog policyrate, exog(ffr_us rgdp_us_pch) lags(1)
est store pvar1_1
pvarirf graph dm, imp(ffr_us rgdp_us_pch policyrate) res(rgdplog cpilog crelog)
this works fine though:
pvarirf, imp(policyrate ) res(rgdplog cpilog crelog)
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