Variance Decomposition

Hi there,

I have a query on how the variance decomposition is conducted in Dynare. I obtain the forecast error variance decomposition results after running the simulations for a DSGE model. But I was wondering if there is any guide on the technical procedure of this exercise for a calibrated DSGE model.

Thanks in advance. Any help would be appreciated.

See [Variance Decomposition)

Hi Johannes,

Thank you so much.