Flat IRFS

[Paul Cahu]

Good morning.

- I have written a quite cumbersome two sectors models in open economy (about 100 equations, most of which are dealing with sector prices and cross-sectorial demand, though hard to simplify).

- It is linear, I computed by hand the log-linearisation of the theoretical model around the steady state.

- When I run the identification command, I get no errors: "All parameters are identified in the model (rank of H); All parameters are identified by J moments (rank of J)"

- My IRFs are however flat. It seems that the model stays blocked at the steady state (I get the famous "All endogenous are constant..." message).

- My guess would be that my shocks may not be well specified, but I do not understand why. It seems to me that the linearity might be a problem. Sorry for it looks like a silly issue but I don't understand it.

Would anyone be able to assist?

Thank you so much in advance.

Best regards,

Paul Cahu

[Paul Cahu]

Sorry for the silly question.
I had forgotten to declare the shocks:

"var e_a; stderr 0.01;"

Hoping this post will allow another tired macroeconomist one day...