I want to ask why my impulse response is so strange, so fluctuating, what is the general problem?
My model is a traditional financial friction model, consisting of households, intermediate manufacturers, retail manufacturers, and investment manufacturers.
basline_no.mod (5.3 KB)
See
Thank you, professor
Also not that you are using a min()
-operator that will not work in stochastic simulations.
Professor, is there a good way to diagnose which equation is the problem?
Unfortunately, no. And it may be more than one equation.