BEAR TOOLBOX shock size of impulse response

Hello,

I am using BEAR TOOLBOX to obtain impulse response function of outcome variable to the 25 basis point monetary policy shock. The problem is there is no option in App of BEAR toolbox. how can i do it . please suggest

[Walter Roberson]

(BEAR Toolbox appears to refer to https://www.ecb.europa.eu/press/research-publications/working-papers/html/bear-toolbox.en.html )

Answer 1

[Sahas]

Hi @Singh basne,

I hope you've already had a chance to go through the Bear Toolbox documentation. I recommend taking a look at Chapter 4 (page 45 onwards), which provides steps for implementing shock-specific methodologies.

Bear Toolbox User Guide: https://github.com/european-central-bank/BEAR-toolbox/blob/master/tbx/doc/BEAR_User_guide_v5.pdf

You can also explore the existing implementations of "impulse response functions" within the Bear Toolbox which are compatible with different model types. If you need to adjust for a specific shock size, modify the "initial shock" according to the data you have.

Functions in the Bear Toolbox: https://in.mathworks.com/matlabcentral/fileexchange/103370-bear#functions_tab

Hope this is beneficial and gives a good starting point for your tasks.