Impulse Response Function:

[Francois Durant]

Hi,

I'm trying to build a VAR model for which I would like to plot the Impulse Response Function. I have used the following code:

var cost_stick lead4_change_UR change_IR change_CPI, lags(1/4)
vargranger

irf create myirf, set(myirfs)
irf graph oirf, impulse(cost_stick) response(cost_stick lead4_change_UR)

I have gotten the graph enclosed in the message. I'm surprised to see that the impulse response for my variable "cost_stick" does not start at 1 (it starts around 0.35). How should I modify the code? Thanks!

[Francois Durant]

Can anyone help with that? Thanks!