Issues with the IRFs

Hi,
I am trying to understand how to get the IR right for the variable POstar (international price of oil).
In the first model (… denoted Model5_externaldraft3), the IR does not show up. I though it has to do with the overall external sector part of the model. So I expanded with the all relevant variables in the new model (Model5_external). Now the impulse is not smooth.

My primary focus is Model5_externaldraft3 as it is more simplified. I will appreciate any advise to get the impulse showing. Thanks.

Model5_Externaldraft3.m (4.1 KB)
Model5_Externaldraft3.mod (7.6 KB)
Model5_External.mod (8.7 KB)
Model5_ExternalSS.m (4.2 KB)

I don’t understand what the problem is. That most variables do not react to epsPOstar? You can check that E move exactly opposite to POstar to leave PO (and the rest of the model) unaffected.

Thanks @jpfeifer . I am trying to get the IRF showing on the simple version of the model (…draft3). You can see that when running there no IRF displayed.

This version shows some IRFs. Note that most IRFs are 0 and therefore not shown.
Model5_Externaldraft3.mod (7.6 KB)
You could use irf_plot_threshold = 0 to change that.

Thanks a lot @jpfeifer. Is there any way to make the IRF more smooth? Or is it normal? I find it awkward.I tried changing the shock parameters but it does not help much.

Have a look at the size of the response. If you set

there will often be wiggles due to numerical error as the IRFs are not exactly 0 but so small any wiggles are meaningless.