by dilsat » Sun Jun 17, 2012 11:09 am
Hello guys, I am working with a DSGE model with Financial Accelerator. Although the rank condition is verified and I am taking impulse responses, those responses do not come back to steady state. It is saying that "All endogenous are constant or non stationary, not displaying correlations and auto-correlations". I have 5 transitory shocks in the system and the shocks hit the economy separately. What should I do the get rid of this problem?