Dear All,

I want to get Posterior IRF of a system growing with technology.In the equation system,output,investment is trasformed to stationary variable according to dynare request.But I want to get Posterior IRF for output,investment which grows with technology(that are,real output and investment).what should I do ?

Attached file is my mod file and data file.

If you estimated the model in first differences, you have to integrate the series up (i.e. add up the changes) the variables after a permanent technology shock. You have to program this yourself. For example, let X_t be the trend in labor-augmenting technology and define y_t=Y_t/X_t. Then obviously Y_t=y_t*X_t. From the estimated model, you have y_t (the detrended one) and the response of Delta X_t. Starting with X_0=1, it is easy to back out the IRF of y_t.

Dear jpfeifer:

Thank you very much! I will try