Interpreting IRF

[flumas22]

Dear Dynare users,

I have one question with regard to working paper Adolfson et al. (2007): Bayesian Estimation of an Open Economy DSGE Model with Incomplete Pass-Through. I have estimated their model and have used several observables such as:

first differences of GDP

interest rate/100

and so on...and then I have plotted irf functions to a risk-premium shock.

Estimated stderr of risk-premium shock is 0,0048.

My question is: is it possible to interpret: 48 basic points socks to a risk premium leads to (0,002 on grapf)) 0,2 percent points reduction in GDP growth?


Thanks for answer.

[flumas22]

error in previos post...

* first differences of ln(GDP)

[kyri82]

A one standard deviation shock, that is a 0.48 percent or 48 basis points increase in the risk-premium, leads to a 0.2% decrease in GDP growth (all other constant)