Allow me to share a small update about work, I found an easy way to plot the impulse response function using the beta release of RATS 11, and its online help for the GRAPH instruction. I will show how to draw the following graph below:
The code looklike this:
GRAPH(STYLE=LINE,WIDTH=7,HEIGHT=5,PATTERNS, SUBHEADER=" 1 SD positive shock to US China relations", $
HEADER="US Partisan Conflict Index", KHEIGHT=0.5, KWIDTH=0.5, $
key=LORIGHT,NODATES,klabels=||"IRF","68% Lower bond",$
"68% Upper bond","90% Lower bond","90% Upper bond"||,$
FOOTER="Note: Improved political relations between the US and China reduce US Partisan conflict.") 5
# IRFE1(1,1) 1 25
# IRFE1(2,1) 1 25 2
# IRFE1(3,1) 1 25 2
# IRFE1(4,1) 1 25 4
# IRFE1(5,1) 1 25 4An improvement in the relation between the US and China, concerning trade tariffs for example, reduces the partisan conflict between Democrats and Republicans.
Not so difficult to do! Remarks and comments are welcome.
You are welcome to download, share, or comment on the following working paper:
- Cai, Y., Saadaoui, J., & Uddin, G. S. (2024). US Partisan Conflict, Sino-US Political Relation News, and Oil Market Dynamics. Available at SSRN 4868418.