Hi everyone, May I kindly ask about the correlation between components of GDP (simulated in Dynare). For a simple model with equilibrium condition, Y = C + I + G (and even for complex models), one can deduce from the IRFs whether the simulated series (C, I, G) will be procyclical or countercyclica…

Please do not double-post. See [image] Correlation of simulated variables for each shock in a multi-shock model Stochastic simulations No, it is not. You would need to shut off all other shocks manually.

Dynare Forum

Correlation between GDP components

Stochastic simulations

jpfeifer July 29, 2020, 8:46am 7

Please do not double-post. See