I’m having a peculiar problem with my .mod file in that I’m getting permanent effects on some variables from temporary shocks. I haven’t been able to find anything wrong with the model, so I figured I’d see if someone could spot something. Specifically, the shocks a, ap, and xd are giving me permanent responses when the stochastic process is stationary. Any help would be greatly appreciated.
Penny.mod (5.46 KB)