Hi, everyone. The value of labor market vacancy and match is so large.
And the steadystate.m report
How should I solve this problem? I have checked the model multiple times, and I think the model is correct.
Without seeing the model, it is impossible to tell.
Thanks for you reply, Prof Pfeifer, I send you code by PM.
Are you sure that percentage deviations are the right concept in this case. Vacancies in steady state are just 2.59281e-05. Even tiny movements in absolute value can be very large in percentage terms.
Thanks very much for your response, Prof Pfeifer.
I hadn’t considered this issue before. I previously thought that in the IRF, all variables, such as interest rates and inflation, should be expressed as percentage deviations, with a unified measurement unit, expect for interest rates and inflation.
I also read your reply in this post. Question about understanding irfs in dynare - #3 by jolly816
Regarding vacancies, should I use the log percentage deviation? Like in your Born_Pfeifer_2020/BP2020_CES.mod
IRF_mat_percent_from_SSS_logged = (IRF_mat(1+burnin+1:1+burnin+options_.irf,:)-stochastic_steady_state);
For such tinty values, how can I accurately depict its changes?
Whether you express something in percentage deviations or absolute deviations does not alter the results. It’s just a renormalization. Of course, normalizing with something close to 0 may yield results that are hard to interpret.
But do you have an idea why steady state vacancies in your model are pretty much 0?