Graph of Impulse Response

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weber
Posts: 5
Joined: Fri Oct 30, 2009 2:46 pm

Graph of Impulse Response

Postby weber » Wed Nov 25, 2009 9:51 am

This probably is a stupid question, but I just want to make sure..........when the graph of Impulse Response shows "Response of VAR1 to VAR2", that means Eviews shocks VAR2 and the graph tells how VAR1 respond to the shocks from VAR2, correct?

Thanks

trubador
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Posts: 1520
Joined: Thu Nov 20, 2008 12:04 pm

Re: Graph of Impulse Response

Postby trubador » Wed Nov 25, 2009 11:11 am

That is a rough interpretation, but it is correct.


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