Unconventional IRF shape

[eisamabodian]

Hi everyone.

I have a New Keynesian DSGE model when I run this model everything is Oki but the
shapes of IRFs are not normal.
ANEWMODEL.mod (4.8 KB)

As you can see shape of IRFs are not similar to conventional or normal IRFs.
Although there is not any error in Dynare output results and IRFs converge to zero after some period of time.
I think that the problem may goes back to the modeling of Tax , Bonds and Government expenditures.

[jpfeifer]

See

Issues with Ramsey Planner Model (Blanchard Kahn with undetected issues in model diagnostics)

Sorry for the delay. But I don’t have anything to say beyond the generic “Try working with a simplified version of the model”. Oscillations like you describe are typically a sign of a complex eigenvalue. They are most commonly caused by either a timing error or a problematic parameterization in something like a (fiscal) feedback rule.