Hello everyone, I am working on a DSGE model using Dynare, and I have encountered an issue with the impulse response functions (IRFs) of key variables such as inflation, wage rates, consumption etc. Specifically, the responses exhibit extremely small values in the order of x10^{-15}, x10^{-16}, and…

See [image] Issues with the IRFs Stochastic simulations 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. That is something that needs no a…

Numerical Noise in Impulse Response Functions

Stochastic simulations

jpfeifer 20 November 2024 12:28 2

See

That is something that needs no addressing.