Hi. The variables are logs of fuel exports and manufacturing exports.The data is annual. There is 2 lags to the reduced form VAR (as suggested by AIC criteria).
I have attached the generated responses to this post.
Thanks for any help. :)
Search found 2 matches
- Wed Apr 28, 2010 4:31 pm
- Forum: Econometric Discussions
- Topic: Impulse response functions
- Replies: 3
- Views: 17558
- Wed Apr 28, 2010 12:09 am
- Forum: Econometric Discussions
- Topic: Impulse response functions
- Replies: 3
- Views: 17558
Impulse response functions
Hi. I having a problem interpreting/understanding the basic impulse response graphs. I have two I(1) variables in a reduced form VAR model using a 1 s.d shock on their residuals. When var1 is shocked, the response from var2 graph is it increases by 0.2 s.ds while a shock in var1 on itself causes a r...
