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IRFs graphs are not smooth
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IRFs graphs are not smooth
by economicunderg » Fri Feb 03, 2017 2:22 pm
Hello everyone, I constructed a standard DSGE model and try to study the IRFs diagram. However, the graphs dynare produced based on my model is very strange, unlike smooth curves they are kinked. Is there anything I did wrong wit hthe model? I attached my m. file below. Thank you for your help.
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DSGE.m- (1.33 KiB) Downloaded 48 times
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Re: IRFs graphs are not smooth
by jpfeifer » Fri Feb 03, 2017 7:22 pm
This seems to be related to a complex eigenvalue arising from a timing error. Are you sure that the timing for capital is correct, particularly in the production function? It looks incompatible with Dynare's convention.
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