Page 1 of 1

IRFs graphs are not smooth

PostPosted: Fri Feb 03, 2017 2:22 pm
by economicunderg
Hello everyone, I constructed a standard DSGE model and try to study the IRFs diagram. However, the graphs dynare produced based on my model is very strange, unlike smooth curves they are kinked. Is there anything I did wrong wit hthe model? I attached my m. file below. Thank you for your help.

Re: IRFs graphs are not smooth

PostPosted: Fri Feb 03, 2017 7:22 pm
by jpfeifer
This seems to be related to a complex eigenvalue arising from a timing error. Are you sure that the timing for capital is correct, particularly in the production function? It looks incompatible with Dynare's convention.