How to find out order of Cholesky variance decomposition?

16 July 2022 0 1K Report

Hello researchers

I want to compute variance decomposition through the Cholesky variance decomposition method, however, the outcome of variance decomposition changes when I change the order of variables. I want to know, how can we choose the proper order of variables to get the appropriate outcome. I have 9 variables in the VAR equation.

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