A question about the IRF

[Michael_Paetz]

Hey John,

check these here:

Dynare relative irf

Hi, I try to use dynare to relative irf to plot impulse response function. But it seems that the result is wrong. For example, say two variables k and n. If k change 68%, and n change 32% then I define knratio=k/n Dynare told me that this knratio change -3.1% I thought that use dynare relative irf should be the same as log linearization. So that I can put my model into the code directly as it shows in model. But it seems that it is wrong. Is there anyone who has the same problem as me? th…

Relative_irf option for stoch_simul command

Hello, I just want to clarify what exactly the relative_irf option for the stoch_simul command is computing? Does the response numbers shown in the Figures mean that the variable of interest responds by n% on impact after a 1% exogenous shock or a 1 unit exogenous shock? I would appreciate it if anyone can let me know exactly how the relative_irf is computed. Sometimes I see very large numbers of the orders of 100s. Thanks in advance!

I haven’t used the command yet, but I think the links should be clarifying.

Best

Michael