There are procedures for new cointegration tests in VAR models and the analysis of identifying and overidentifying restrictions on the lo ng-run cointegrating relations. The computation of orthogonalized and generalized impulse response functions, multivariate dynamic forecasts, and forecast error-variance decomposition is also possible with the Microfit 4.0. Figure 1 gives an overview of the menus structure of the new program. First, a brief comment about the data. It consists of annual data from 1963 to 1992, taken from the OECD National Accounts.
G is a general price index.
The program positions you over option 3, ready to load up data from a Microfit file, but if you want to use a file in one of the other acceptable f ormats or enter new data at the keyboard you can select one of the other options. The variables currently in the memory will be listed at the top. Here you see the screen after the formulae have been entered and computed. You can also see that Help is available by pressing F1 or F2 as required. At this stage you might wish to examine the data graphically and there are commands to produce time serie s plots or scatter diagrams of variables.