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stationarity problem in log-linarized model

PostPosted: Sun Jun 17, 2012 11:09 am
by dilsat
Hello guys, I am working with a DSGE model with Financial Accelerator. Although the rank condition is verified and I am taking impulse responses, those responses do not come back to steady state. It is saying that "All endogenous are constant or non stationary, not displaying correlations and auto-correlations". I have 5 transitory shocks in the system and the shocks hit the economy separately. What should I do the get rid of this problem?

Re: stationarity problem in log-linarized model

PostPosted: Sat Jun 30, 2012 12:52 pm
by jpfeifer
This most probably means there is a bug in your model and you accidentally introduced a unit root.