Dear all, I have estimated my DSGE model (bayesian estimation), the mcmc graphs, the validation ratio of brooks and gelman and also the posterior distribution graphs, all confirm the validation of model, now I have some questions:
- Are the IRF plots vaild if they simply fulfill the expectations from theories? or do I have to check the moments, if they are close to moments for real data or not?
- If I have to check for moments, how close should they be to the moments of real data? how is it for y gap bellow in your opinion?
1st moments 2nd moments correlation coef.
1st model -0.00002 0.0088 0.2716
2nd model 0.00003 0.0082 0.4129
real data -0.00064 0.0274 0.483
- for analyzing the irf plots, are the numbers meaningful (in log linearized model) or should we just care for the directions and overall responses?
Thanks in advance