I am trying to program an RCB model with a unit root for the technological process. The attached program is the simplest form of the model where the equations are stationary. There is something wrong with the code that i am unable to spot. The IRFs and the moments are not consistent with what i obtain when i log-lin the equations and solve them with B-K method myself.
If anyone could help me out it would be greatly appreciated.
tp1_corr.mod (818 Bytes)