IRF does not show all my endogenous variables

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IRF does not show all my endogenous variables

Postby VivianaAlfonso » Mon Nov 25, 2013 6:28 pm

Hello. I am new use of dynare and I have a simple model where I need to produce IRF. I use the command stoch_simul to produce them but it does not show the response for all my endogenous variables ( I have less than 12). Does anybody knows why is this happening? Does it mean that the variable does not respond to the shock?

Thank you for your answers.

Here my code:

var k, i, y, z, c, mu, l, k_l;
varexo e_z, e_c;

parameters alpha, delta, rho_z, rho_c, theta, sigma_z, sigma_c, r,w;

r = 0.04;
rho_z = 0.9;
sigma_z = 0.05;
theta = 0.9;
alpha = 0.35;
delta= 1;
rho_c=0.9;
sigma_c=0.15;
w = 0.36;

model;
k(+1)=k*(1-delta)+i ;
i = c+(theta*k(+1))-(w*l) ;
log(z) = rho_z*log(z(-1)) - e_z ;
log(c) = rho_c*log(c(-1)) - e_c ;
w*(1+mu)=(1-alpha)*z*((k/l)^alpha);
(1-delta)*(1+mu(+1))+alpha*z(+1)*((k(+1)/l(+1))^(alpha-1))+mu(+1)*theta=(1+mu)*(1+r);
y=z*(k^alpha)*(l^(1-alpha));
k_l=k/l;
end;


initval;
mu =0.1;
l=1/(w+((w*(1+mu)/(1-alpha))^(1/alpha))*(delta-theta));
k=((w*(1+mu)/(1-alpha))^(1/alpha))*l;
i=delta*k;
z=1;
y=(k^alpha)*(l^(1-alpha));
c=1;
k_l=k/l;
end;
steady;
check;

shocks;
var e_c; stderr sigma_c;
end;
stoch_simul(order=1,nocorr,nomoments,irf=40);
VivianaAlfonso
 
Posts: 2
Joined: Mon Nov 25, 2013 6:02 pm

Re: IRF does not show all my endogenous variables

Postby costa » Tue Nov 26, 2013 2:05 am

I didn´t run your code but I think you forgot to put the other shock (technology shock) in the "shocks" part of the code. You have two shocks, but apparently only e_c is in the shocks part.


shocks;
var e_c; stderr sigma_c;
end;
costa
 
Posts: 47
Joined: Thu Nov 14, 2013 8:09 pm

Re: IRF does not show all my endogenous variables

Postby costa » Tue Nov 26, 2013 2:16 am

I think the timing of you capital accumulation equation is wrong as well.
costa
 
Posts: 47
Joined: Thu Nov 14, 2013 8:09 pm

Re: IRF does not show all my endogenous variables

Postby VivianaAlfonso » Tue Nov 26, 2013 3:55 pm

Thank you for your reply. Indeed, I corrected the capital accumulation equation and now it works. Since I am new user, I am not very aware of the timing requirements of the program to indicate which is the predetermined variable.
Best,
VivianaAlfonso
 
Posts: 2
Joined: Mon Nov 25, 2013 6:02 pm


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