SVAR ROBUSTNESS

[valtanen]

Hi guys!

I am estimating the impact of liquidity on government bond yields. I would like know can the multicollinearity, non-linearity or stationarity be problems when using Cholesky impulse responses?

In addition, does anyone happen to know what is the unit of the responses? For example, there is one standard deviation shock in the liquidity and the graph shows increase of 0.015 in the yield. Does this means that the yield increases by 0.015 units?

Many thanks for your help!