require(vars)
library(knitr)


#Question 1

x=cbind(m.unrate.MIILIN$MI ,m.unrate.MIILIN$IL,m.unrate.MIILIN$IN)
x=log(x)
rt=diff(x)*100
colnames(rt) <- c("MI","IL","IN")
varfit=VAR(rt,p=3)
summary(varfit)
varfit.prd = predict(varfit , n.ahead = 15, ci = 0.95)
fanchart(varfit.prd)
impresp=irf(varfit)
plot(impresp)
fevd(varfit , n.ahead = 20)


rmarkdown::render(file.choose(),"pdf_document")