Regression modelMultivariate time series

Impulse Response Function (IRF)

The Impulse Response Function (IRF) traces the dynamic response of each variable in a Vector Autoregression (VAR) system to a one-unit shock in one of its error terms over a user-specified forecast horizon. It is the primary tool for structural analysis following VAR estimation and is widely used in macroeconomics, monetary economics, and finance to quantify how shocks propagate through interconnected time series systems.

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Sources

  1. Lütkepohl, H. (2005). New Introduction to Multiple Time Series Analysis. Springer. ISBN: 978-3-540-40172-8

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Referenced by

ScholarGateImpulse Response Function (Impulse Response Function (IRF)). Retrieved 2026-06-04 from https://scholargate.app/tr/econometrics/impulse-response-function