reverse-shooting

Matlab scripts for reverse shooting
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lsnw.m (520B)


      1 % LSnw.m   Newey West robust estimation
      2 %
      3 
      4 function [beta,trob,told,sigma2,robvcv] = lsnw(y,x);
      5 
      6 [N K] = size(x);
      7 xxinv = inv(x'*x);
      8 beta  = xxinv*x'*y;
      9 u     = y-x*beta;
     10 sigma2=u'*u/(N-K);
     11 vcv=sigma2*xxinv;
     12 told=beta./sqrt(diag(vcv));
     13 
     14 % Calculate NW vcv
     15 G=2*floor(N^(1/4))+1;
     16 B=0;
     17 for j=0:G;
     18 	lam=0;
     19 	for t=j+1:N;
     20 		st= (x(t,:))'*u(t);
     21 		stj=(x(t-j,:))'*u(t-j);
     22 		lam = lam +st*stj';
     23 	end % t
     24 	lam = lam/N;
     25 	B=B+(1-j/(G+1))*(lam+lam');
     26 end %j
     27 B=(N/(N-K))*B;
     28 robvcv =xxinv*(N*B)*xxinv;
     29 trob = beta./sqrt(diag(robvcv));