Impulse Response

[ErcanU]

Hi, I am having difficulty in interpreting my VECM results. I have 4 non-stationary variables (all have unit roots) that are not co-integrated (Johansens test). So I took the first differences and they are all now co-integrated. Then I ran VECM with 2 lags using the first diff'ed variables. After that I ran accumulated response to Cholesky one SD over 6 months. The charts look nice and confirm the expected response of the dependent variable against the impulses. However, I do not know how to quantify the results. For example, as you can see in the attached file, the cumulative decline in the dependent variable D(vald) over 6 months is about 5 units. What is this unit?

The dependent variable is given as percentage points in my model. Say 20 percent, not 0.20. The independent variables xrt and grt are also given in percentage points, such as 10 or 2. The other inde variable bondd is given in basis points such as 200 basis points. So how do I interpret these results in laymans terms?

best

e.