# Interpretation of quarterly vs annual shock

**URL:** https://forum.dynare.org/t/interpretation-of-quarterly-vs-annual-shock/16358
**Category:** General DSGE Modeling
**Created:** [2 August 2020 16:23 UTC](https://forum.dynare.org/t/interpretation-of-quarterly-vs-annual-shock/16358 "2020-08-02T16:23:28Z")
**Posts on this page:** 2
**Page:** 1

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### Author: ![amina0621](https://forum.dynare.org/letter_avatar_proxy/v4/letter/a/54ee81/32.png) [@amina0621](https://forum.dynare.org/u/amina0621)
#### Post date: [2 August 2020 16:23 UTC](https://forum.dynare.org/t/interpretation-of-quarterly-vs-annual-shock/16358/1 "2020-08-02T16:23:28Z")

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Hello, I wanted to ask for an interpretation.  
My model is quarterly and I annual interest rates. When I have a shock of 0.25, should I interpret IRF as 0.25 quarterly shock OR 0.25\*4=1 annual shock?

Thanks.

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### Author: ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [4 August 2020 09:40 UTC](https://forum.dynare.org/t/interpretation-of-quarterly-vs-annual-shock/16358/2 "2020-08-04T09:40:07Z")

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What do you mean with

> [@amina0621](#):
>
> I annual interest rates

?  
If your interest is quarterly and 1 is used to denote 1% instead of 100%, then 0.25 is a 25 basis point shock to the quarterly interest rate, which amounts to 100 basis points annually.