|
Reaction of M |
Reaction of IN |
Reaction of A |
Reaction of T |
Reaction of TR |
Reaction of S |
|
to a shock in EC |
to a shock in EC |
to a shock in EC |
to a shock in EC |
to a shock in EC |
to a shock in EC |
Figure 6: Impulse Responses for Sectoral Output and Equity Capital with Cholesky Decomposition
Note: The solid lines trace the impulse responses of the sectoral output of mining (M), industry (IN), agriculture (A), trade (T), trans-
portation (TR) and services (S) to a shock in equity capital (EC) for the years 1870 to 1912.
4 A sectoral analysis
Table I: Variance Decomposition for Sectoral Output and Equity Capital
|
Period |
M due to EC |
IN due to EC |
A due to EC |
T due to EC |
TR due to EC |
S due to EC |
|
^^5 |
0.670 |
20.532 |
16.207 |
23.426 |
3.594 |
5.202 |
|
[3.026] |
[13.086] |
[9.637] |
[15.464] |
[5.668] |
[7.061] | |
|
10 |
0.852 |
24.775 |
26.664 |
20.462 |
2.272 |
11.091 |
|
[6.767] |
[20.563] |
[13.019] |
[17.772] |
[5.561] |
[10.762] |
Note: The variance decomposition (in percent) is shown for the sectoral output of mining (M), industry
(IN), agriculture (A), trade (T), transportation (TR) and services (S). The figures show the share of the
forecast error variance that is due to a shock in equity capital.