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The second edition adds several topics. The main new contributions are an in-depth coverage of vector auto-regressive models (VAR), structural vector auto-regressive models (SVAR), and structural vector error correction models (SVEC). The estimation and inference of these models, as well as the employment of impulse-response functions, forecast error-variance decomposition and diagnostic testing, is accompanied by numerous R code examples. The author shows how swiftly forecasts with confidence bands can be produced for VAR and VEC models. The text and the R examples have been adjusted to accommodate the latest changes in the contributed packages that are used throughout the book.

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