I am running a calibrated TANK model based on the lecture notes of Valerio Nispi Landi/Gali et al (2007). Despite huge residuals in the static equations I get a (reasonable) solution to the problem, I wonder why. Moreover, I am trying to get the IRFs as percentage deviations. I am aware of the options on how to get them, however, e.g. the loglinear option (see TANK5_revised.mod) and the use of logged auxiliary variables (see TANK7_revised.mod) yield different results, again, I wonder why and where I am going wrong. Any help is very much appreciated.

TANK7_revised.mod (7.2 KB)

TANK5_revised.mod (6.8 KB)