data=[3.730	5.415	6.01820	2.2798	3.5974	2.1404	1.013403521	1.003836334	-5.398898007	-19.48872586	-6.317490855	1.078113696	-5.736369632	-11.85718621
2.860	5.203	5.55395	1.9914	3.1676	2.1244	1.020521378	1.005591905	-4.379674052	-15.93374618	-3.51343668	3.436334403	-2.520566563	-5.7035885
2.760	4.948	5.12214	1.9399	2.8860	2.1305	1.019495565	1.007661351	-2.395358429	-16.62856278	-2.714552854	4.95536523	1.026723569	-5.524513686
2.930	4.984	4.92733	2.0145	2.9376	2.3437	1.01927992	1.005969504	-1.298793454	-15.02569241	3.07912831	4.32217886	4.014082072	3.270784591
4.010	5.376	5.12895	2.2448	3.0490	2.6136	1.009465919	1.004257082	-0.81709433	-12.12812885	2.186870852	5.529117985	5.124460377	6.214317978
4.200	5.346	5.25607	2.4413	3.2009	2.8957	1.015273309	1.006321732	5.240313359	-16.51919413	6.615244813	8.802393334	12.55930143	12.9036391
4.790	5.592	5.34643	2.7348	3.7949	3.2215	1.019774577	1.004716573	7.351040363	-10.42386854	10.19223439	15.02137526	15.95882631	17.84405301
4.530	5.949	5.54082	3.1143	3.6476	3.5902	1.016462767	1.002297938	17.54247092	10.70909733	16.40454039	21.81987118	11.52780885	26.00229668
5.230	6.328	5.64841	3.3511	3.9796	3.8204	1.022581207	1.005664809	17.36753242	14.76169362	15.09200069	28.01416648	18.57158484	24.38497659
9.130	6.891	6.06700	3.6330	5.6581	4.0678	1.023501336	1.005767421	17.53277647	19.26758461	20.95818748	34.20404517	23.2165922	24.9974552
8.480	7.038	6.18025	3.9448	5.8125	4.4937	1.037666348	1.005113865	16.40212787	21.48390824	23.47560585	33.39172449	26.21927274	12.79152855
11.830	7.308	6.43035	4.2869	8.4376	4.7184	1.046939154	1.012077663	15.03731715	27.09700393	24.30728984	32.20699437	22.68635765	11.62672709
7.730	6.978	6.22322	4.3857	8.0009	4.4763	1.045678867	1.010301492	15.54040894	24.17456477	22.97335088	29.03398208	19.49546157	12.49859628
5.940	7.406	6.15730	4.4866	6.8096	4.8593	1.034184131	1.008081095	13.51426604	27.5926086	21.81669606	24.82778305	15.27406608	17.05410117
6.280	7.575	6.24737	4.4992	6.6611	4.9817	1.02095187	1.007735959	9.541327049	23.44915159	21.98552594	20.66386458	12.10174937	13.71521667
11.920	7.808	6.24185	3.9491	8.5147	4.2424	1.013765377	0.996531932	2.179353245	29.18900559	19.25381328	16.3382954	3.812109536	2.611105753
11.560	6.517	5.34161	3.1728	8.0913	2.0068	1.018668594	0.99716943	-8.9988612	26.34141691	16.53216803	11.99671112	5.988121044	-11.12703278
15.700	6.330	4.57522	3.2692	10.7985	1.308	0.990094037	1.000048083	-13.03314692	21.70923558	13.3223599	8.308036056	9.963045861	-19.01558106
13.920	5.317	4.19378	2.9495	10.7475	0.8709	0.989900271	1.002829299	-16.01458051	6.913045228	11.43789821	5.457947796	4.895620108	-23.47596958
11.320	5.149	3.90239	2.8605	10.7213	0.722	0.988978136	1.004071632	-14.835627	-9.749333502	8.552600869	2.705566524	4.106841133	-14.76927766
3.370	5.131	3.94619	2.0003	7.6819	0.6613	0.992199687	1.004182806	-9.786714598	-17.30362126	6.376513088	0.931058201	-0.848911585	-11.92004026
2.160	4.503	3.83481	1.7872	3.7548	0.6876	1.005740919	1.00478086	-10.92640345	-17.10036109	4.155157172	-0.665052358	-3.368694669	-5.248078969
1.400	5.022	3.81407	1.9935	2.9705	0.8749	1.009787193	1.004486257	-9.065090998	-18.19245248	4.243084878	-1.777116452	-6.355427086	-4.911360189
1.000	4.677	3.84922	2.0488	2.0270	1.0208	1.009128047	1.006489974	-6.506121759	-24.94989159	1.099858035	-3.012466332	-6.10850862	-2.423649499
0.860	4.670	3.86296	1.8968	1.2031	1.0958	1.013541287	1.008671421	-5.359097437	-23.43368451	-0.821951323	-4.914252828	-6.516997436	-4.669758578
0.770	4.356	3.74058	1.8927	0.7087	1.4159	1.01253483	1.007524146	-5.198963009	-19.78548011	-3.839602048	-5.6698229	-3.541539908	-6.444394557
0.840	4.367	3.84871	1.8221	0.7764	1.5614	1.007750132	1.00425916	-2.985359038	-15.33665683	-2.422584928	-6.229732479	-1.577109012	-8.514686429
1.370	4.249	3.83018	1.9387	1.5639	1.4954	1.006356964	1.008501248	-1.900620094	-9.353721261	-5.655661944	-7.118689819	-8.746788339	-2.545269347
1.430	4.443	3.65458	1.3674	1.6733	1.0429	1.006212243	1.006198386	-0.461677387	-6.154369085	-11.33057556	-9.621893308	-10.25677277	-5.187831752
0.950	3.535	3.33899	1.0065	1.2524	0.6943	1.003592388	1.005353041	0.889184458	-1.399196999	-13.8335272	-10.58493343	-8.673269078	-1.084362921
0.650	3.770	3.04779	0.6631	1.1533	0.3616	1.00224456	1.005309251	1.216711692	-5.510284002	-10.35299184	-10.4300799	-11.00460255	-2.092459586
0.530	3.552	2.79492	0.6106	0.9980	0.1958	1.003662836	1.005917113	1.514229341	-1.642894663	-12.49294855	-10.50615575	-9.443739682	0.729834614
0.490	3.797	2.66005	0.6159	0.9553	0.2112	0.994641141	1.001777513	3.684241264	2.126935759	-11.99343617	-10.29557814	-8.051950475	-0.921980366
0.410	3.963	2.63091	0.4427	0.6457	0.2067	0.998402691	1.000943507	5.290632099	6.081250845	-10.17553317	-6.941436935	-6.006502195	1.076114741
0.300	3.621	2.60431	0.4106	0.5396	0.2235	1.003286722	1.004827525	4.312225402	8.796660026	-8.156575072	-6.450829151	-2.982644502	1.654874714
0.260	3.4968	2.59072	0.5741	0.6007	0.2399	1.001199814	1.000492738	4.072987893	10.49093828	-4.618887281	-6.873244113	0.614615556	17.94377745
];

r_obs = data(:,1)-mean(data(:,1)); 
r_be_obs = data(:,2)-mean(data(:,2)); 
r_bh_obs = data(:,3)-mean(data(:,3));
r_deu_obs = data(:,4)-mean(data(:,4));
r_dlv_obs = data(:,5)-mean(data(:,5));
r_star_obs = data(:,6)-mean(data(:,6));
pi_obs = data(:,7)-mean(data(:,7)); 
pi_star_obs = data(:,8)-mean(data(:,8)); 
C_obs = data(:,9); 
q_h_obs = data(:,10); 
b_e_obs = data(:,11);
b_h_obs = data(:,12);
D_eu_obs = data(:,13);
D_lv_obs = data(:,14);

%r_obs	r_be_obs	r_bh_obs	r_deu_obs	r_dlv_obs	r_star_obs	pi	pi_star_obs	C_obs	q_h_obs	b_e_obs	b_h_obs	D_eu_obs	D_lv_obs  ;

%K_B_obs = data(:,3);
% ds = data(:,13);
% dneer = data(:,16);
% r_dlv = data(:,15);
% b_h = data(:,8); 
% b_e = data(:,9); 
%Country: Latvia 
%Sample Range: 1q2005-4q2013
%Observations: 36 
%Variables: