hello!
I run a DSGE model with dynare, but the impulse response figure seems strange.
The figures are like waves fluctuating frequently in the first periods.
What is the problem? Thank you in advance!
You may have wrong timing.
Exactly, wrong timing of the predetermined states often results in complex eigenvalues and thus oscillating IRFs.
Thank you very much！but I don’t know what does “wrong timing” mean?
Does it mean I should change the code about “stoch_simul” ?
I’m very confusing. Thank you!
It means there is a mistake in your model equations. Most probably a confusion of timing, i.e. you use for example k(-1) when it should be k or c when it should be c(+1).
Oh I see. Thank you very much! I appreciate your help!