Dear community,
does anyone know, whether dynare provides the possiblity to plot IRFs with deviations from SS-values in absolute differences (i.e. X - X_ss instead of (X - X_ss) / X_ss)? I did not find anything in the manual so I guess not. Please correct me if I am wrong.
Greetings
Dear poelser,
It depends on whether your model is log-linearized, i.e. you use command model
or model(linear)
. If your variable is logged, the absolute differences log(X) - log(X_ss) is thus approximatively the (X - X_ss)/ X_ss .
You can see Professor Pfeifer’s paper: “A Guide to Specifying Observation Equations for the Estimation of DSGE Models” sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf
particularly, see subsection 4.4 of this note.
Hope this helped.
Dear Clandy,
your response helped in the needed way. Thank you!
Best