Normalizing a shock in IRF in VAR
Posted: Fri Mar 15, 2013 4:27 am
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.