Page 1 of 1

error bands for impulse responses from input shocks

Posted: Fri Jul 03, 2015 9:14 am
by Jade_Redoblado
Hi!

We created graphs of impulse responses generated from input shocks. Each of the graphs shows the accumulated responses of a given variable from simultaneous shocks to a number of variables. The impulse responses were generated by the following lines of code,

IMPULSE(MODEL=VARSTD,STEPS=20,$
shock=|| 0.0037057182,0.1247632272,0.3375260115,0.0,0.0783508817,0.0,0.0378155488,0.0,0.0||,$
results=tojoint)
graph(nodates,number=0,header="Response of Forex to Shocks in the Forex and PODs of Property Firms")
# tojoint(1,1)

We need to create error bands for these impulse responses using the code below but have not been able to do so,

@MCVARDoDraws(model=VARSTD,STEP=NSTEPS,DRAWS=1000)
@mcgraphirf(model=VARSTD,shocklabels=IMPLABEL,varlabels=IMPLABEL,PERCENTILES=||.025,.975||,PAGE=BYSHOCKS)

The above lines of code produced Cholesky shocks instead of the simultaneous shocks we used.

Any clarification would be appreciated.

Jade

Re: error bands for impulse responses from input shocks

Posted: Fri Jul 03, 2015 11:12 am
by TomDoan
It's very similar to MONTEEXOGVAR.RPF except that you need to change the IMPULSE instruction inside the loop to do the input shocks.