Dear Prof. Jpfeifer,
I have construct a two-sector small open economy model, I calibrate the model parameters and the code can run well. However, the impulse response graphs seem to be weird. Some graphs show that the impulse response fluctuates up and down (not oscillating). I think it should respond to a shock smoothly. Could you please help me check what the problem is?
Here attached the code. Thank you very much!housing_labor.mod (6.3 KB)