The problem of pulse response graph

General DSGE Modeling
1

In my model results, the following issues have arisen:

  1. Why is the image not smooth enough, with noticeable fluctuations around the fifth epoch?
  2. Why is there such a significant variation in the image concerning ‘p1c,’ reaching 6000?
  3. Why is there an impact on r2, but it doesn’t start changing from 1?

I hope that the teachers can provide me with some guidance on whether these issues are related to the model itself or the parameters.
result1.mod (5.5 KB)

p1c
p1c

2

I can only give you the generic advice: simplify your model and see where the problem comes from. Most often, such pictures result from complex internal propagation mechanisms at work, usually transmitted by forward-looking equations like the Euler equation.

3

thank you very much ,I will check my model again.

5

Dear teacher, is this kind of result acceptable? Although this graph has some issues, the overall trend aligns with our research.

6

You are the only one who can judge that. You need to be able to explain what is going on in your model.