Dear Dynare forum,
I ran Smets and Wouters (2007) model using their data obtained from AER website. The posterior estimation results were nice but the bayesian irf looked rather strange, especially the confidence band, (1) sometimes there is no band, just the upper bound, and sometimes the band showed white area, instead of normal grey color; (2) the graph drew horizontal line, but not at (0,0).
The command used is:
estimation(datafile=usmodel_data,mode_compute=6,first_obs=71,mh_replic=20000,mh_nblocks=2,mh_jscale=0.20,mh_drop=0.2,bayesian_irf);
Dynare version 4.3.3 is used.
Has anyone encountered similar problems before? Any idea on what's wrong or what I can do to make the irf looks normal, like additional options?
Thank you so much!
Best,
DK19