Impulse Response Function

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lisa
Posts: 45
Joined: Thu Jul 28, 2011 3:27 pm

Impulse Response Function

Postby lisa » Sun May 01, 2022 5:54 pm

Hello,
I want to estimate the impact of one unit deviation of government expenditure (for example 1 dollar deviation) on GDP. When I run the svar model in eviews, the impulse response function indicates the response to one S.D (Standard Deviation) Innovations. My question is how can I transform this result to the response to one unit deviation.

EViews Matt
EViews Developer
Posts: 560
Joined: Thu Apr 25, 2013 7:48 pm

Re: Impulse Response Function

Postby EViews Matt » Mon May 02, 2022 10:20 am

Hello,

Since you've using an SVAR factorization, the impulse responses are in term of innovations to the structural variables, not the original variables, e.g. government expenditure or GDP. By construction, the one S.D. structural innovations and the one unit structural innovations are identical.

lisa
Posts: 45
Joined: Thu Jul 28, 2011 3:27 pm

Re: Impulse Response Function

Postby lisa » Mon May 02, 2022 4:19 pm

Thank you for your replay


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