Unusual results and figures

Stochastic simulations
1

Hi, pls help me with this models. can I consider it right or it shows some sort of problems?
last.mod (3.5 KB)

2

No your IRFs are wrong. This may be due to a timing problem.

3

Yes, see Oscilating or alternating IRFs

4

Thank you.

5

Thank you, but I do not have any timing issues, what else can cause this problem?

6

For instance, the timing of capital in your production fucntion or in the capital acumulation equation does not respect the dynare convention. Since capital is a predetermind variable, you should change the timing.

check section 3.5.4 of Dynare user guide: http://www.sfu.ca/~kkasa/UserGuide

7

Thank you so much.

8

@alchi49 That’s not true. Due to

predetermined_variables M, K;

@aliyeftn Even if you are unaware of it, it’s most often a timing problem. But sometimes there is a problem with parameters, e.g. in debt feedback rules.

9

Thanks a lot.

10

should I set “B” predetermined too?

11

You are the only person who even knows what B is.

12

:smile:
sorry.

13

For people who might see it later:
I replaced the autoregression equation for one variable with autoregression equation for another one and my problem solved.