I’m new to DSGE models and to Dynare and I’m trying to understand how to interprete the impulse-response graphs for a particular shock.
The authors set a shock to labor tax in the following line:
I am interested in getting an impact tax multiplier (Delta Y / Delta Tax), when looking at the graphs. I see that Tax has dropped down until -40 and Output has increased by 0.08. My problem is that I don’t know the units of those changes. Does anyone has any idea?Thank you in advance.