Hi
Friends, when the shock, some variables do not go to their steady state (move away from the steady state), exactly where is the problem with the model that I should solve ??
If the Blanchard-Kahn conditions are satisfied, the only reason can be a unit root.
Excuse me, my model is now fully implemented and also has IRF diagrams.
Isn’t the problem the unit root for pre-running the model ??
Now, to solve the problem of unit root, where should I check the model ??
No, a unit root will not cause the Blanchard-Kahn conditions to fail. There are many models that do feature unit roots. Thus, you need to find out whether having a unit root in your model is a feature or a problem/bug.
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My model does not currently have a Blanchard- Kahn bet problem because it has been run (simulated).
You mean that one of my equations has a unit root, which has caused the reaction diagrams of some variables not to converge to their steady state.
Excuse me, what forms do the equations that make up the unit root usually take? Or how are they written?
Often model_diagnostics will provide the info.