I estimated a loglinearized DSGE model for a small open economy and I found that one of the estimated value of the standard error of shocks exceeds 1 (1.51)?
What would be the explanation of that?
best
It most probably means you scaled your data with 100. See “Remark 10 (Scaling With a Factor 100)” in Pfeifer (2013): “A Guide to Specifying Observation Equations for the Estimation of DSGE Models”
Does this follow the same scaling rule for the impulse response function?
Yes.