Dear Professors,
Model Works.
But still one big problem about shocks in public spending. When i Run my model (symmetric between italy and Europe) the shock in public spending in country i denotes a push of debt in country f and the contrary at the same time for the country f.
But why?? if i impose correct shocks in correct debt equations why they act in this symmetric way with debt??Fasezero.mod (11.4 KB)
(bi, bf are the equations of debts) Model is in log-lin version.