IRFs rapidly return to steady state

[linxilala]

Hello everyone.

I construct a DSGE model with three types of households to observe the impact of interest rate changes on individual households consumption, where R is the interest rate. I log-linearize the model and use dynare for Bayesian estimation, and the posterior IRFs are shown in the figure.
Some variables regress slowly to steady state, while others regress quickly to steady state in the second period and produce a small fluctuation.
Why does my posterior IRFs look like this? Is there any way to fix it?

Thanks.

[jpfeifer]

See e.g.

Wage impulse response in a TANK model

The try starting from a simpler model where you have more of an idea how things are supposed to look like. What you describe can happen if there is not much endogenous persistence in the model so that most adjustment happens in the first period.