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Hi there, I was looking for the answers to this question as well. Here's what I was told - hope it helps: When you run the variance decomposition using Cholesky decomposition, the results will tell you which variable affects which contemporaneously. The Cholesky decomposition uses a lower triangular...

I've attached my workfile (impst_realgdpc). What I did was select DLIND and DLI_P and created a VAR (1 lag only and constant) with them. Then I selected Proc->Estimate Structural Factorization and typed in the following restrictions:

@e1 = C(1)*@u1 + C(2)*@u2
@e2 = -C(1)*@u1+C(1)*@u2
@lr1(@u2)=0

Hi, I'm trying to run a Blanchard-Quah-type VAR decomposition using Proc->Estimate Structural Factorization. But I need both Short-Run and Long-Run restrictions on the VAR estimation. However, when I do so, it gives me an error "Internal Error 500". I'm just wondering if this error number ...