I came across this text that seems to estimate a non-recursive SVAR in Eviews, but the restrictions are kinda different from what I expected.
In their recursive SVAR, they have the following results in Eviews which are the restrictions I expected given the model.
The results above has the following restrictions for matrix A and B. So we know the coefficients of the contemporaneous variables.
In the non-recursive SVAR, they have the following results
But I expected the following retrictions for matrices A and B instead.
As we can see, their results show the restrictions below. How can we then know the coefficients of the contemporaneous variables? I know e = (A^-1)Bu will match the model in the non-recursive example above, but I don't understand why A is an identity matrix and B is not diagonal. And why my expectation in the red matrixes above is wrong. I actually want B to be diagonal or identity matrix in the non-recursive SVAR, not matrix A. Thanks for any help.