Some of the steady-state values are negative numbers

Stochastic simulations
1

model526.mod (4.0 KB)
Hello professor, I wrote a model, but the run out of the steady-state value in the tax is negative, and the impulse response graph does not seem to match the reality, what is the reason for this？Can I solve this problem by adjusting the value of parameters?Looking forward to your reply ,thank you!

2

(1) IRF may be caused by timing erro.
(2) There is something wrong with steady state value, the value of variable h should be caculated, but you directly set h=1/3, so steady-state value in the tax is negative.

3

Thank you for your reply.

  1. I don’t quite understand the time error, can you say more details?
    2.Regarding the setting of h, some books set it to one-third, and I can’t do that？
    Looking forward to your guidance,thank you!
4
  1. It means that you should pay attention to the variable timing, t or t-1period.
  2. If you set h to one-third, then you should calibrate some parameters to make sure the value of h correct.
    Or you should caculate h.
5

thank you I will check my model.Does the period of k need to be k(-1)?

6

Hello, I would like to ask how I should set it up if I want to see the impulse response graph of the impact of negative shocks on the economy. For example, a decline in total factor productivity should lead to a decline in output, but in my chart output is rising.I’m a beginner and maybe my questions are a bit silly . looking forward to your guidance,thank you
model526.mod (4.0 KB)