Dear all,

I am replicating some impulse responses from a paper and have a question regarding the normalisation of them.

In this model two variables (h_t & p_t) have the same shock sizes (0.01), but different pre-multiplying parameters (0.2 for h_t & 0.8 for p_t). Both of the variables follow the same AR(1) process with the same AR parameters. So, the only difference lies in the pre-multiplying parameters. The authors of that paper normalise the impulse responses somehow, so that they get completely identical IRFs for both h_t and p_t.

Could you help me to find out how to normalise the IRFs to get the same results? relative_irf doesnâ€™t help here.

Thanks.