Strange shapes of IRFs in DSGE model with stcky wages, prices and government spending shock


#1

Hi everybody!
I wrote a dynare code and it runs but I see this oscillating movement in some IRFs!
I don’t know what is wrong…I checked the FOCs and the log linearization…I can’t find the error!
I attach the code here…
Thank you in advance!group_7fabi.mod (3.6 KB)


#2

You have a complex eigenvalue that should not be there. Usually, this is caused by a timing error or a sign error in the model.


#3

Thank you so much professor! There was a sign error in the model, in the equation of the wage inflation…Now I post the correct code! Maybe it would be useful to someone!

gruppo7.mod (3.6 KB)