EViews.com

Hi everyone,

I would like to clarify the following:

1. A one standard deviation shock to variable x is simply a (1 unit/std deviation of x) shock to the structural errors?

2. The impulse responses are in standard deviation units if the data you've used are standardised?

Thanks! :)

Hello everyone, Could someone explain to me why the authors are doing the following to get their shocks and impulse responses? This paper estimates a factor-augmented VAR. The unobservable factors are estimated from a standardised dataset. The unobserved factors and observed factors (variables that ...