My question concerns whether there is a sensible length of time for a model to converge to its new steady state.
I am modifying an existing RBC model in a published paper. In the existing model, following the permanent shocks (to market regulation) I am also examining, the economy takes about 168-169 periods (periods are interpreted as quarters) to reach its new steady state.
With my modification it takes over twice the amount of time (between 425 and 491 periods). I am not sure whether this would be considered too long. Does it appear unreasonable for a model to take this long to reach its new steady state following a permanent shock?
Thanks in advance for your help.