Posterior mean variance decomposition

Estimation ML/Bayesian estimation
1

Screenshot 2023-10-05 000839
Hi everyone,

I did the posterior mean variance decomposition (moments_varendo,conditional_variance_decomposition=[1 4 20 40]) , but the last column results look weird. I was wondering if this is normal. if not, what is the reason? and how to fix this issue?

Thank you,
Alex

2

This indeed looks wrong. Can you provide the codes?

4

Can you also provide the mode-file and state the Dynare version you were using?

5

Attached is the mode_file. The Dynare version is 5.4. Thank you Prof. Pfeifer.
Acode_mh_mode.mat (5.0 KB)

6

It seems there is nothing wrong, just that a particular shock does not contribute much to the overall variance.

7

Thank you Prof. Pfeifer for helping check my code.