Cholesky ordering

[aridema]

Good morning to everyone.
I am developing a model with 4 variable: 1) Supply curve of loans, 2) Cost of funds and balance sheet constraints 3) Pressure from competition an 4) risk perception..(2,3 and 4 influence variable 1) I am trying to run a SVAR and I need to correctly order my variables in order to run a Cholesky decomposition.. What is more import to me is to valuate if a shock on 1) Supply curve of loans negatively affects 2) Cost of funds and balance sheet constraints.
The order should follow the economic litterature but I don't really understand what is better to do in this case. Can please someone help me? I am new in these types of studies.
Thank you!! :)

[Elderfield.A]

Hi,

You might find Ouliaris et al. book useful - https://www.eviews.com/StructVAR/structvar.html

Adam