Dear all, I have a problem with IRF’s generated by stock_simul command after Bayesian estimation. Bayesian IRFs are all right but the simulation IRFs using posterior modes are explosive. I tried pruning bu they become wiggly. What might be the problem?

Is it safe to use bayesian irfs? and what is the difference between the two?

wiggly irfs.eps (35.7 KB)

bayesian irfs.pdf (10.1 KB) modecheck2.pdf (8.0 KB)

modecheck1.pdf (15.5 KB) posterior2.pdf (66.4 KB)

posterior1.pdf (68.8 KB)