Yes, Professor, the simulation works. I checked it again. I delete the estimation-related block and add a shock(surprise) block and then run the simulation the irf shows the following figure:
I am uploading the simulation mod file for your reference.
test_orig.zip (398.6 KB)
And in addition, can this simulation showcased that the Taylor rule works well as I asked you about the ramsey policy at another link?Equations converges to zero by hand however not by Dynare - #9 by jpfeifer I am still struggling to figure out why the osr or Ramsey doesn’t work. Thank you so much for your constant help.