EViews.com

Hi everyone,

I am using SVAR model with EViews 10.0, I estimated the historical decomposition, but I do not understand the meaning of "total stochastic" in historical decomposition graph (please see the red shade area in the following image attachment). Can some me answer this question, thanks in advance.

Best,
Zhenhua

Hello, did you have an answer to your question?

Sorry. Never saw this one until now.

One can look at the summed effect of all of the shocks on the variable in question, which can be decomposed into shocks from each source. The former is the total effect of all of the stochastic components, which can be compared to the effect from the specified stochastic component.