Problem with results of variance decomposition

Stochastic simulations
1

Dear Professor Pfeifer,

I am a little confused about the results of variance decomposition.

I compared many papers based on the same country and found that the results of variance decomposition are quite different though the exogenous shocks are similar. How should I judge which set of result is correct ?

Thank you for your time.

2

Results will always depend on the model you are using. There is no way to tell which ones are correct. We don’t know the true underlying model. You can only try to judge which underlying model you find more plausible.