Impulse Response Function

[munna99185]

Impulse responses trace out the responsiveness of the dependent variables
in the VAR to shocks to each of the variables. So, for each variable from
each equation separately, a unit shock is applied to the error, and the
effects upon the VAR system over time are noted.


Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University