## Sign Restricted VAR

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Pmat
Posts: 1
Joined: Wed Jul 31, 2019 3:15 pm

### Re: Sign Restricted VAR

chartwel wrote:
dakila wrote:No. You cannot interpret like that. First define the shock by the sign restriction, then interpret impulse response function of Y and X as the effect of that shock.

That makes perfect sense. Thanks for the clarification, it is all clear now.

I am sorry if I’m also being silly, but I have the same question and I did not understand the answer. For example, in a 3 variable VAR if you set +3 as a constraint, what exactly are you constraining? I think you are constraining the RESPONSE of the third variable to be positive. But the response to what shock?? If, let’s say, I want to constrain the response of the THIRD variable to a shock on the SECOND variable to be positive, how do I use the addin to perform this? Again, sorry if this is a silly question, but I’ve read the instructions and it is not clear to me. Thank you very much.

gvera
Posts: 1
Joined: Mon Mar 02, 2020 6:48 am

### Re: Sign Restricted VAR

How do I write a zero restriction in the command line of srvar? Thank you.

dakila
Posts: 388
Joined: Tue Nov 24, 2015 4:57 pm

### Re: Sign Restricted VAR

For example:

Code: Select all

`srvar(method=0, zvar=gdpc1) 12 rest @ gdpc1 gdpdef cprindex fedfunds bognonbr totresns`