Apply confidence bands in a forecast

[Ana Gabriela Zea]

How can I add confidence bands to the forecast graphs in stata, which were obtained after running a VAR model? The codes used for the forecasts were:

fcast compute f, step(13) dynamic(q(2023q4))

fcast graph ftasa_pib
fcast graph fHP_log_ingresos_petroleros_1
fcast graph fHP_log_gasto_1
fcast graph fHP_log_consumo_hogares_1
fcast graph fHP_log_inversion_1
fcast graph ftasa

[Andrew Musau]

You have to start the predictions 1 period following the end of the sample if you want asymptotic standard errors to be calculated. That is what fcast does by default, so you can omit the -dynamic()- option or leave it empty.

fcast compute f, step(13) dynamic()