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Graph of Impulse Response

Posted: Wed Nov 25, 2009 9:51 am
by weber
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

Re: Graph of Impulse Response

Posted: Wed Nov 25, 2009 11:11 am
by trubador
That is a rough interpretation, but it is correct.