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Relative Steady State Deviations

PostPosted: Wed Apr 08, 2015 12:21 pm
by MacroBC
Hi

How do i get relative steady state deviations in a deterministic model that is linear instead of absolute values? I'm thinking about something like the option "relative_irf" in the stoch_simul function for the stochastic case.

Re: Relative Steady State Deviations

PostPosted: Thu Apr 09, 2015 7:03 pm
by jpfeifer
I don't understand the question. relative_irf only normalizes the shock sizes, but does not transform the responses from absolute to percentage deviations from steady state. What you can always do is define an auxiliary variable that does exactly what you want. If you know the steady state for y, save it to a parameter y_ss and define a new variable

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y_hat=(y-y_ss)/y_ss;