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abnormal impulse response figure
Posted:
Fri Jun 06, 2014 8:18 amby Mandy
hello!
I run a DSGE model with dynare, but the impulse response figure seems strange.
The figures are like waves fluctuating frequently in the first periods.
What is the problem? Thank you in advance!
Re: abnormal impulse response figure
Posted:
Fri Jun 06, 2014 9:00 amby Daniel Bendel
You may have wrong timing.
Re: abnormal impulse response figure
Posted:
Fri Jun 06, 2014 2:48 pmby jpfeifer
Exactly, wrong timing of the predetermined states often results in complex eigenvalues and thus oscillating IRFs.
Re: abnormal impulse response figure
Posted:
Sat Jun 07, 2014 6:37 amby Mandy
Thank you very much！but I don't know what does "wrong timing" mean?
Re: abnormal impulse response figure
Posted:
Sat Jun 07, 2014 6:54 amby Mandy
Does it mean I should change the code about "stoch_simul" ?
I'm very confusing. Thank you!
Re: abnormal impulse response figure
Posted:
Sat Jun 07, 2014 7:17 amby jpfeifer
It means there is a mistake in your model equations. Most probably a confusion of timing, i.e. you use for example k(-1) when it should be k or c when it should be c(+1).
Re: abnormal impulse response figure
Posted:
Sat Jun 07, 2014 7:21 amby Mandy
Oh I see. Thank you very much! I appreciate your help!:)