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how to interpret Eviews impulse response graph results

Posted: Sun Nov 24, 2019 10:10 pm
by Ruwan
hello,

could anyone give me advice for interpret following attached eviews impulse response graphs.
I used structural VAR identification to find impulse response function.
So, I have checked Net Tax, General public service expenditure (GPS), Social service expenditures, Economic service expenditures, GDP responses to economic service innovations. all variables were at log form and I(1) .
I want to know that vertical axis interpretation and is it one time shock applied to default eviews settings for impulse responses?

Thank you

Ruwan

Re: how to interpret Eviews impulse response graph results

Posted: Mon Nov 25, 2019 8:52 am
by AfonsoRod
I think your results can not be trusted, since I believe that those red lines must be in the same quadrant, which does not happen in any of your graphs. I am not acquainted enough with VAR models to tell you how can you solve that problem, so my advice is for you to study well the fundamentals of the VAR model and also to try and look at other articles that perform this model.