I am working on the RBC model and incorporating adjustment costs on investment. When generating any shock, the dynamics fluctuate very strongly. Could someone please help me? What should I see?
Thanks!
Attached image
I am working on the RBC model and incorporating adjustment costs on investment. When generating any shock, the dynamics fluctuate very strongly. Could someone please help me? What should I see?
Thanks!
Attached image
See e.g.