in the dynare output for impulse responses, if the variable X jumps to 0.02 after a shock, how does one interpret the result…
a. X responds with a 2 per cent deviation from steady state
b. X responds with a 0.02 per cent deviation from steady state.
Can anyone reply to this question please? I have the same question and I think this forum will be more useful if experienced people provide some answers to forum questions rather than just looking at them and copying the relevant mod files.
I hope this previous topic answers your question
A question about IRF *
NB: * new url