Dear Professor,

I have some difficulty in understanding the Bayesian IRFs and intervals, see Figure 10 in the following page.

Can you please confirm if I understand it correctly?

For the Bayesian IRF, it should be obtained by randomly drawing posterior. Each draw corresponds to one set of IRFs. Suppose if you have 1000 draws, I can work out the mean of the IRF. If I sort the IRFs, I should be able to get 5% and 95% intervals.

I also read Leeper, et. al. (2010). It seems they plot IRFs at the mean estimates of the posterior, which is different from my previous understanding. So I am bit confused. Can you please clarify which case is Dynare doing?

Lisa