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
What is the meaning of total stochastic in historical decomposition?
Moderators: EViews Gareth, EViews Moderator
What is the meaning of total stochastic in historical decomposition?
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Re: What is the meaning of total stochastic in historical decomposition?
Hello, did you have an answer to your question?
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Re: What is the meaning of total stochastic in historical decomposition?
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.
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.
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