Dear all, I have the following question. I have a DSGE model, and I need to work with its VAR-like representation. So I have oo_.SmoothedVariables, oo_.SmoothedShocks, which are essentially the trajectories of endogenous variables and shocks according to the model, if I understand correctly. I also have matrices oo_.dr.ghx and oo_.dr.ghu, and the vector of steady states oo_.steady_state. There is a (stylized) formula for the first-order approximation of the model:
y_t = y^s + A y^h_{t-1} + B u_t.
Do I understand correctly that this formula must, after the corresponding variable order rearragements (DR etc), hold as identity with y being oo_.SmoothedVariables, u being oo_.SmoothedShocks, A and B being oo_.dr.ghx and oo_.dr.ghu? I am asking because I have quite significant discrepancies.