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  • What does it mean when I run the SVAR model, lags(4) or lags(1/4)?

    I am running SVAR model short-run restrictions (Cholesky decomposition) the optimal lags length is 4. does it mean I should code in STATA lags(4) or lags(1/4). the first one does not provide meaningful result but the second does.

  • #2
    If I recall correctly, then lags(4) only gives you the 4th lag, not 1-4.

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    • #3
      Thank you, George, That's what I think. Unfortunately, English is not my first language.

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