Dear Dynare users,

I have one question with regard to working paper Adolfson et al. (2007): Bayesian Estimation of an Open Economy DSGE Model with Incomplete Pass-Through. I have estimated their model and have used several observables such as:

first differences of GDP

interest rate/100

and so on…and then I have plotted irf functions to a risk-premium shock.

Estimated stderr of risk-premium shock is 0,0048.

My question is: is it possible to interpret: 48 basic points socks to a risk premium leads to (0,002 on grapf)) 0,2 percent points reduction in GDP growth?

Thanks for answer.