Strange IRF of price markup shock

General DSGE Modeling
1

Hello everyone,
I am estimating a NK model with investment adjustment cost and habit formation and several shocks with UK data. The problem is that the IRF of the price markup shock are not like the IRF genereted by for example Smets and Wouters (2007). As far as I know they are strange. If someone can take a look and make some comment it would be so helpful.

Thank you in advance

UKmodel.mod (4.3 KB)

UKmodel_results.mat (347.9 KB)

2

I also attach data file and the IRF graph
data.mat (6.5 KB)

UKmodel_IRF_e_pricemkp.pdf (4.4 KB)

3

What do you consider strange here?

4

First, thanks for answering.
What I find strange is that when I shock e_pricemkp, the IRF of inflation decreases immediately because of central bank intervention but increases again instead of having a smooth return to zero level. Can it be considered a normal behavior?

5

I see. That indeed sounds strange. But this is something that only you the model builder can debug. Have you tried simplifying the model?

6

I figure out the problem of the model. There was a mistake in the linearization of the model.
Thank you for helping.