I want to compare the irfs from different initial values. According to the UserGuide, I can do it by setting the initial condition in the initval block, without steady following. But why it doesn’t work? The irfs are always the same, as if always starting from the steady state. I used an example in the UserGuide to test. I attached the file.
When I looked at the policy function reported, there are non-zero coefficients on state variables. So I think states matter, do they?
try.mod (619 Bytes)