Interpretation of Bayesian IRF

Dynare help (legacy posts)
1

Hi Dynare users,

I’m quite new of Dynare. I have a doubt on Bayesian IRF. Following previous posts, I understood how they are computed. What is not yet clear to me is what is the magnitude of the shock: do the IRFs represent the responses to a “stderr” shock, as estimated during the estimation process, or are they the responses to a 1%, or 1 sd, or whatever…?

Thanks a lot!

Adrian

2

Nobody? It seems to me a very simple question for people familiar with dynare. Thanks

Adrian

3

Usually, the IRFs are in response to a one standard deviation shock as estimated by the stderr in estimation.

4

Thanks a lot!