The conditions of validity of structural VAR techniques are less restrictive than usually believed. A shock of interest can be recovered, either exactly or with good approximation, even when invertibility does not hold or there are less variables in the VAR than shocks in the macroeconomy.
Gráinne M. Fitzsimons is an associate professor of Management and Organizations at Duke University’s Fuqua School of Business and an associate professor of Psychology and Neuroscience at Duke University.
Measuring Business Performance with Key Performance Indicators and the Balanced Scorecard. A series of four articles will tell how to improve financial performance of a company through key performance indicators and the Balanced Scorecard.