Comments on: The Intuition Behind Impulse Response Functions and Forecast Error Variance Decomposition https://www.aptech.com/blog/the-intuition-behind-impulse-response-functions-and-forecast-error-variance-decomposition/ GAUSS Software - Fastest Platform for Data Analytics Mon, 15 May 2023 14:26:43 +0000 hourly 1 By: Eric https://www.aptech.com/blog/the-intuition-behind-impulse-response-functions-and-forecast-error-variance-decomposition/#comment-2402 Mon, 15 May 2023 14:26:43 +0000 https://www.aptech.com/?p=11581293#comment-2402 Hello,

Thank you for your comment. I am happy you found the blog helpful!

In regard to your question about the graphs, the graphs are labeled such that the first variable listed is the response variable and the second is the shock variable. For example, the graph titled "Consumption to Income" reflects the response of consumption to the income shock.

Hope this helps!

Best,
Eric

]]> By: mash https://www.aptech.com/blog/the-intuition-behind-impulse-response-functions-and-forecast-error-variance-decomposition/#comment-2401 Wed, 03 May 2023 09:59:25 +0000 https://www.aptech.com/?p=11581293#comment-2401 These articles are very helpful and well written. Thanks.

The figures appear mislabeled. The text indicates that these are IRF describing how an income shock affects income, consumption, and investment. They should be labeled INCOME TO … rather than … TO INCOME, no?

]]> By: Abdi https://www.aptech.com/blog/the-intuition-behind-impulse-response-functions-and-forecast-error-variance-decomposition/#comment-2391 Sat, 11 Feb 2023 18:00:29 +0000 https://www.aptech.com/?p=11581293#comment-2391 is the figure in the last, invest to income, significant? can we say significant relation? I found similar result and came across difficulty in whether it is significant or not.

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