Hi, Let the exogenous variable in a DSGE model be epsilon and y the output . The IRF y_epsilon is the deviation of output from its steady state value after a one-off shock of magnitude one StandardDeviation(epsilon) occurs. What about the simulated variable y, is it the result of the same one-off shock, or repetitive random shocks? Regards

Simulated series are generated by drawing a sequence of random shocks from the specified distribution (mean 0 and covariance matrix given in the shocks-block).

Thanks, Johannes