The Impact of Uncertainty Shocks under Measurement Error: A Proxy SVAR approach

A growing literature considers the impact of uncertainty using SVAR models that include proxies for uncertainty shocks as endogenous variables. In this paper we consider the impact of measurement error in these proxies on the estimated impulse responses. We show via a Monte-Carlo experiment that measurement error can result in attenuation bias in impulse responses. In contrast, the proxy SVAR that uses the uncertainty shock proxy as an instrument does not su¤er from this bias. Applying this latter method to the Bloom (2009) data-set results in impulse responses to uncertainty shocks that are larger in magnitude and more persistent than those obtained from a recursive SVAR.

The Finometer can function as a standalone instrument in blood pressure variability studies and does not require support equipment to determine breathing frequency

Objective: The Finometer (FMS, Finapres Measurement Systems, Amsterdam) records the beat-to-beat finger pulse contour and has been recommended for research studies assessing shortterm changes of blood pressure and its variability. Variability measured in the frequency domain using spectral analysis requires that the impact of breathing be restricted to high frequency spectra (> 0.15 Hz) so data from participants needs to be excluded when the breathing impact occurs in the low frequency spectra (0.04 - 0.15 Hz). This study tested whether breathing frequency can be estimated from standard Finometer recordings using either stroke volume oscillation frequency or spectral stroke volume variability maximum scores. Methods: 22 healthy volunteers were tested for 270s in the supine and upright positions. Finometer recorded the finger pulse contour and a respiratory transducer recorded breathing. Stoke volume oscillation frequency was calculated manually while the stroke volume spectral maximums were obtained using the software Cardiovascular Parameter Analysis (Nevrokard Kiauta, Izola, Slovenia). These estimates were compared to the breathing frequency using the Bland-Altman procedures. Results: Stroke volume oscillation frequency estimated breathing frequency to <±10% 95% levels of agreement in both supine (-7.7 to 7.0%) and upright (-6.7 to 5.4%) postures. Stroke volume variability maximum scores did not accurately estimate breathing frequency. Conclusions: Breathing frequency can be accurately derived from standard Finometer recordings using stroke volume oscillations for healthy individuals in both supine and upright postures. The Finometer can function as a standalone instrument in blood pressure variability studies and does not require support equipment to determine breathing frequency.