Hi Prof Pfeifer, may I clarify…

When all shocks (including preference shocks) are non-zero in the model, dynare’s osr gives `phi_pi = 3.4`

as optimal (opt_algo = 4)

When only productivity shock is non-zero (all other shocks are zero), osr gives `phi_pi = 2.5`

as optimal (opt_algo = 4)

When only cost-push shock is non-zero (all other shocks are zero), osr gives `phi_pi = 2.6`

as optimal (opt_algo = 4)

**My question**

When only preference shock is non-zero (all other shocks are zero), osr gives `phi_pi = 622.501`

as optimal (opt_algo = 4).

Why such a large value of `phi_pi`

in the case of preference shocks?. In the model, preference shocks do not generate the largest volatility in output gap and inflation rate.