🌍 Week 11 Homework — Feedback

Student: Alessandra Nishaj Assignment: VAR Estimation and Identification

✅ Overall Assessment

Result: ✅ Pass

Excellent submission. The code is highly professional, with detailed comments and a thorough analysis of the results. The script not only estimates the model but also provides a “Question & Answer” section that interprets the findings in detail.

🔍 Task-by-Task Check

Task Description Status Notes
1.1 Data Loading & Cleanup ✅ Correctly loads and transforms data
1.2 Data Transformation ✅ Correctly computes annualized growth rates
1.3 Construct Data Matrices ✅ Correct setup of VAR matrices
1.4 OLS Estimation ✅ Correct matrix OLS estimation
1.5 Extract A1 Matrix ✅ Correct extraction of A1
1.6 Residuals & Sigma ✅ Correct covariance calculation
1.7 Identification (Cholesky) ✅ Correct Cholesky decomposition
1.8 Compute IRFs ✅ Correct loop for IRF generation
1.9 Plot IRFs ✅ Generates both focused and comprehensive plots
1.10 Save Figures ✅ Saves figures correctly

📈 Technical Implementation

  • Logic: The implementation of the VAR and IRFs is flawless.
  • Analysis: The automated checks for the magnitude of the recession and inflation drop are a great addition.

💬 Style & Clarity

  • Interpretation: The detailed “Interpretation of Cholesky ordering” and “Answer Questions” sections show a deep understanding of the material.
  • Visuals: The code adds shading to negative areas in the plots, which is a sophisticated visualization technique.

📊 Visual Output Assessment

  • Plots: The figures are visually appealing and informative.
  • Shading: The use of area to highlight negative responses is excellent.

✅ Suggestions for Improvement

  1. None: This is a top-tier submission.

🎯 Summary

Outstanding work. The code is not only correct but also demonstrates advanced coding skills (plotting features, automated interpretation).

Grade Level: ✅ Pass (10/10 tasks correct)