This might be a very naive question in this forum and please pardon me for my ignorance but I am at a preamble to understand the dynamics of DSGE models. I have a pretty standard DSGE model with financial frictions, log linearized around the steady state, that produces standard results viz., IRFs, variance decomposition etc. I want to see how my model behaves in the long run instead of the cycles.
Can anyone please tell me how I can achieve that? I can append the mod file if required.
What do you mean with that? Which type of object are you interested in?
I asked exactly the same question to my advisor. The only thing he clarified is that my model is exhibiting movements around the steady state. He is interested in knowing how the model behaves in the longer run. He did not clarify anything beyond that and asked me to find out. My mod file is attached if that is of any help.
From what you describe, calling that person an “advisor” is a stretch. Unfortunately, you have to find out what is asked of you by that person. I am not a mind-reader and don’t know what is asked. If that is the usual state of the advice you get, you should look for a different advisor, because this is not going to end well, according to my experience.
Thank you Professor. I am equally amused by his comments. I wish he looked into my model and found some discrepancies, that would have been helpful. But as of now I dont understand what he says. Thanks anyway.