I’m simulating a standard dsge model. It runs properly and there are no problems.
But I have to compare the results if some parameters are fluctuating. I set the parameter close to the extrem values they could be.
For example a parameter measuring the speed of an adjustment process [0 no adjustment; 1 permanent adjustment].
If I run the model with values close to 0 or 1 I receive only a steady state and no Impulse responce functions. Why?