Hello,
I just want to clarify what exactly the relative_irf option for the stoch_simul command is computing? Does the response numbers shown in the Figures mean that the variable of interest responds by n% on impact after a 1% exogenous shock or a 1 unit exogenous shock? I would appreciate it if anyone can let me know exactly how the relative_irf is computed. Sometimes I see very large numbers of the orders of 100s. Thanks in advance!
Dynare forums
Forums for asking questions, posting comments and uploading examples related to Dynare
relative_irf option for stoch_simul command
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
2 posts
• Page 1 of 1
relative_irf option for stoch_simul command
by wdml » Tue Apr 17, 2007 4:05 pm
- wdml
- Posts: 5
- Joined: Tue Apr 17, 2007 3:56 pm
by MichelJuillard » Sat Apr 21, 2007 5:16 pm
Relative IRFs are computed relative to the size of the innovation. I agree that it isn't the most useful and relative to the steady state of the variable would be better. We will change it in a future release
Best
Michel
Best
Michel
- MichelJuillard
- Posts: 680
- Joined: Thu Nov 18, 2004 10:51 am
2 posts
• Page 1 of 1
Who is online
Users browsing this forum: Google [Bot] and 7 guests