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Variance decomposition and Impulse response

PostPosted: Sat Sep 24, 2016 3:19 am
by monsoon
Hi,

Attached is a DSGE model mod file. I find that for some variables, the model is not producing impulse responses although the variance decomposition shows that it is being explained by certain shocks. For example, r_d (deposit rate). I have not been able to explain why this is happening. Can anyone help with this please.

Looking forward to it.

Thanks.

Re: Variance decomposition and Impulse response

PostPosted: Mon Sep 26, 2016 12:09 pm
by jpfeifer
The movements in that variable are tiny. If you use
Code: Select all
irf_plot_threshold=0

in the unstable version, you can see this. You can also see
THEORETICAL MOMENTS
VARIABLE MEAN STD. DEV. VARIANCE
r_d 0.0099 0.0000 0.0000