SE in Impulse Responses

[msh855]

Hi all,

I would like to know how I can understand whether the impulse responses are statistically significant.
Eviews is reporting -/+ 2 SE bands.

If the impulse response is within this band then we conclude that are significant ? But usually the Bands are getting wider and wider, so makes little sense to me that whatever is within the red lines (Bands) is fine.

Second, I was experimenting with the Monte Carlo option and noticed that, at some number of replications, the bands do not appear. For instance, in my case they were not appearing in the first two periods but start to show up thereafter. What shall i suppose in this case ?

Can someone please help me with the practice on SE in IRF ? I am a bit confused.