Dear all, I computed the IRFs of the NK baseline model and have been puzzled by the response of e.g. output to the neutral technology shock. [name=‘Neutral technology’] log(mu_A)=LambdaA+sigma_A*epsA; NK_baseline_IRF_epsA.pdf (4.2 KB) Why does output react negatively? Isn’t epsA a positive sh…

See the discussion following [image] About leeper code Replication Attempts Hi.I am running stochastic simulation of the model now.But the result is quite counterintuitive.A positive productivity shock would be contractionary in the model.Is it natural or reasonable？Thank…

IRFs NK Baseline model

Stochastic simulations

jpfeifer February 16, 2024, 9:22am 2

See the discussion following