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IRF graph and relationGDP=C+I+G+X-M

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IRF graph and relationGDP=C+I+G+X-M

Postby flumas22 » Mon Mar 26, 2012 12:38 pm

Hi,

I have one question with regard to irf functions. I plot responses of GDP, C, I, G, X, M. Why does not hold relation GDP=C+I+G+X-M on irf grapf??

Thanks for answer.

Jan
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Re: IRF graph and relationGDP=C+I+G+X-M

Postby reubenpjacob » Tue Mar 27, 2012 11:19 am

you have to multiply C, I and G by their steady-state shares in output and then add them. then it will equal output.
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