Dear Sirs,

I am replicating SW 2003 for the euroarea but I m not able neither to get Bayesian IRf nor finding them on the stored output after:

estimation(datafile=rawdata_euromodel_1, first_obs=5, lik_init=2, mode_compute=0,mode_file=sw_euro_mode,mh_replic=0,dsge_var=0.35, bayesian_irf). Why?

I got IR only if I set stoch_simul(irf=20) after estimation, but can those be considered as Bayesian IRFs?

Because you set

`mh_replic=0`

If there are no MCMC draws, you cannot draw from the posterior for generating Bayesian IRFs

Thank you Sir,

As far as a dsge-var version of SW model, since I have data on 7 observables I drop 3 of the 10 shocks and I end up with the covariance matrix of innovations being not p.d. Is there any way of solving this problem apart from loading data on other variables?

At which stage do you get this error message?

First it tells that Matrix is close to be singular or badly scaled. However the red error message starts later telling:

Error using print_info (line 127)…the matrix of the VAR innovations, based on the artificial sample, is not p.d.

This usually implies that not all of your shocks independently affect one of the variables. So you either must use different shocks or different observables.

However, the DSGE VAR for the SW with US data was fine, I estimated the dsge prior weight, I got IRs but I didn’ t get the Variance shock decomposition.

The error message is:

Error using dseries/subsref (line 220)

dseries::subsref: Indices are out of bounds! Subsample cannot end after 230Y.

Error in makedataset (line 252)

DynareDataset = DynareDataset(FIRSTOBS:lastobs);…

Is there any way of getting the Variance decomposition of the shocks?

That error message indicates that you did not correctly specify the `nobs`

and `first_obs`

-options.

1)I have 230 obs (time series of dy), then I specified first_obs=5 and nobs=221 and it works, but I cannot still understand why it does not by setting nobs=222 and greater values.

- Moreover, the graph of shock decomposition of y looks strange because the line of the series of the endogeneous vbl y is shifted downward of about 5 points as compared to the same line.