Hi.

I have defined a negative productivity shock in my model.

exogenous.mod (3.5 KB)

The result of this shock is correct for all variables. But the negative productivity shock has had a positive effect on *Bank’s Profit* and *this variable* have increased. While it should have had a negative effect on *this variable* . I do not know the reason for this positive effect.

Could this be the reason?:

*Bank’s Profit (in the steady state)* (pi_b)=0 in the initval block

Because the bank optimizes and based on this optimization, different variables are selected so that the *Bank’s Profit* is zero in the steady state.

But the steady state of *this variable* in dynare results is obtained as follows:

-2.46691e-11

Thank you in advance for your help