Policy and Transition functions - how to interpret zeros

Stochastic simulations
1

Hi - I have a quick question - in my log-linearized calibrated DSGE model, I am finding that for one particular variable, all but one corresponding horizontal entries in the Policy and Transition Function are showing up as 0. The non-zero entry is coming to -1.

Its looking a bit like:

POLICY AND TRANSITION FUNCTIONS

rer_hat 0 0 0 0 -1 0 0 0 0 …

I was wondering if there is any special significance of this? Is this something to be necessarily worried about?

Grateful for thoughts and opinions.

Thanks…

2

That means that the variable you are considering only has an impact on one of the endogenous variables you are considering. Whether you should be worried about this depends on your model and your expectation whether this is something that should happen