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Hey guys,

I have estimated this VAR:

X_t = A_0 + B(L)X_t-1 + C(L)d_t + e_t

A_0: column vector of constants, X_t-1 : column vector of endogenous variables, d_t: column vector of exogenous variables
I have used lag length criterion etc. to obtain lag lengths.
I am trying to use Impulse Response Functions to estimate the effect of a shock in the exogenous series to the rest of the system. However I am struggling to see how I incorporate the exogenous series as the shock. Even through User Specified shocks it seems to only consider the endogenous variables.
Should I consider SVAR?

I am using EViews 8.

Cheers lads

No built-in procedure. The trick is to make model from VAR model.(proc/make model). Then simulate it.

Thanks for the response dakila!

Have you done this before?
I make the model with my exogenous series as the exogenous variable and it does not appear in my model as a variable. I make the model with my exogenous series as an endogenous variable and it does appear. I assume I'd have to alter the variable just before I make the model i.e. reduce by 1% etc, to see the changes. By simulate, do you mean solve (and go through the succeeding options)? All I seem to get is some text output but ideally I'd want some graphs? Can you shed any light? Really appreciate this!