IRF - absolute deviation from SS-values

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