Hi Everyone,
I'm estimating an SVAR model with variables in levels, which are transformed into logarithmic form. I estimate a VAR using the Cholesky decomposition, and get IRFs. The IRFs say that I obtain the 'response to one Cholesky SD'. Where do I find the values for these 'one Cholesky SD' units?
Is it a shock of 1% (as they are in logs), or should I check the standard errors of the estimates (which are to be found in view -> variance decomposition -> table)
Thanks in advance!
What is a 1 Chokesky Standard Dev in a log model?
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