Dynare forums

Hi All,
I just would like to know since forecast error variance decomposition is a transformed version of impulse response functions, does it mean all the shocks appears in the impulse response graphs (IRF) to a variable must also appears in that variable's forecast error variance decomposition (FEVD)?
Thank you!
Kind regards,
Jesse

Yes, all shocks that move a particular variable in an IRF will also contribute to its forecast error variance decomposition.

Thank you very much!