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Hello,

I have been working in a shock decomposition exercise, but since I am not very familiar with that, I cannot judge my results.
For example, I have this results (see attachment) and I have a question Why do the initital values have a high and persistence contribution?

Regarding how to judge results from shock decomposition, do you have any guidelines?

Thanks in advance for your help!

without knowing the meaning of the shocks and what is the variable that you are presenting it is hard to say something about the goodness of your decomposition.
The only thing that i can say is that the role of initial values usually tend to desappear quickly . This is not the case and this is not good in general. Without looking at the model is hard to say why.