What is Cholesky decomposition
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Learn things especially in coding need a practice. Lets put it into work then. Today we are going to enthusiatly dig deeper between what is VAR and what is structural VAR.
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PhD is when you are trying to explain something and get so enthusiatly love about it.
When we discuss a lot about SVAR, there is so many words mentioning Cholesky decomposition, what is it? And why it is important to know about Cholesky decomposition, so let's say it's actually a way to find the other format of the triangle in upper and lower.
Lets say
\( A = L . L^{T} \)
Or Matrix x equal with decomposition L multiply by L transpose.
The picture is here
Play with Cholesky in Matlab.
After I learned about Cholesky decomposition, I feel like I got some superpower.
Five simple step of CHolesky decomposition
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