Normalizing a shock in IRF in VAR
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Normalizing a shock in IRF in VAR
Hey guys, I really need your help. I am running a VAR using three variables. Two of them are government spending and GDP. I want to see the impulse response of GDP to government spending shock but this shock should be normalized to one percentage point of GDP. I am usinga cholesky decomposition. How do I do this eviews??? Please help.
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