smart_impactmat function

Create a random VAR model $(dxd)$ error impact matrix $B$

fairly close to the given invertible impact matrix.

smart_impactmat generates a random VAR model $(dxd)$ error impact matrix $B$

fairly close to the given invertible impact matrix.

smart_impactmat(d, B, accuracy, is_regime1 = TRUE)

Arguments

• B: an invertible $(dxd)$ impact matrix specifying expected value of the matrix to be generated. Should have strictly positive diagonal entries in a decreasing order.
• accuracy: a positive real number adjusting how close to the given impact matrix the returned individual should be. Larger value implies higher accuracy.
• is_regime1: is the impact matrix for Regime 1? Regime 1 impact matrix is constrained so the elements in its first row are in a decreasing ordering and the diagonal elements are strictly positive.

Returns

Returns a $(d^2 \times 1)$ vector containing the vectorized impact matrix $B$.