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Unstable IRFs in Dynare
Posted:
Thu Jan 12, 2017 9:45 pm
by AS90
Is there a way for Dynare to deliver and plot unstable impulse response functions? - The main premise is that the shock trigger indeed an ongoing divergence from the steady state. If so, which code file and which part thereof is to be altered? Thanks.
Re: Unstable IRFs in Dynare
Posted:
Tue Jan 17, 2017 10:54 am
by jpfeifer
Dynare at the current stage only works with Blanchard-Kahn stable models, i.e. models that have a unique bounded equilibrium. Therefore, unstable IRFs are not allowed/possible.
Re: Unstable IRFs in Dynare
Posted:
Tue Jan 17, 2017 4:28 pm
by AS90
Thank you for your answer. Acknowledged.