impulse response functions

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eviewsuser2000
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Joined: Sun Feb 13, 2022 5:48 am

impulse response functions

Postby eviewsuser2000 » Sun Feb 13, 2022 10:00 am

when EViews generates an impulse response function, I was wondering what exactly the black line in the middle represents. I know that the two orange lines show the confidence interval, but is the black line the median response? the mean response? or is it just the general estimation of the impulse response?
I have attached an example impulse response function for illustration.
any help would be greatly appreciated. thank you
Attachments
IRF.png
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EViews Gareth
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Re: impulse response functions

Postby EViews Gareth » Sun Feb 13, 2022 11:50 am

It is the point estimate
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eviewsuser2000
Posts: 9
Joined: Sun Feb 13, 2022 5:48 am

Re: impulse response functions

Postby eviewsuser2000 » Sun Feb 13, 2022 11:58 am

@ EViews Gareth, thank you very much for your reply. so, it displays the point estimate of the impulse response? that is, the best guess of the response variable's reaction to an innovation in the impulse variable?
and I am right in thinking that if the confidence interval covers the x-axis, then there is insufficient evidence to suggest that the response is non-zero (at whatever significance level you are considering)?

many thanks again for your reply.


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