I’m calculating a second order DSGE model, I get the irfs out.
I’m encountering a weird situation and wondering why.
See the figure, the black line the one using the following shocks coding, listing only 1 shock out; the blue line is the results using the shocks coding, listing all shocks out; while all other parts of the mods all the same. The figure that I plotted out using only the es_ne shock, the plotting code is also below.
I believe that these two shocks coding should lead to the same irfs figures, but it turns out to be not!!!See the figure.
I check these twice, there is indeed no difference between these two files, merely the difference at the shocks. I think that even the second one listing all shocks out but I only use the es_ne shock’s result to plot, so it should not bring any difference. But the results shows the difference between these two ways of shocks coding. I never encountered this in the past when solving for 1-order linear models.
Can anyone tell me why? I really want to know the reasons and want to fix it!
var es_ne; stderr 0.0199;
stoch_simul(order=2,irf=40,nograph)y c k inv w rk n r mc pi i re rl loan lev_f nw_f lev_m Welf spread;
%code2_listing_allshocks steady; %(solve_algo=1) check; shocks; var es_a; stderr 0.0152; var es_g; stderr 0.0438; var es_v; stderr 0.0130; var es_i; stderr 0.0875; var es_c; stderr 0.0258; var es_ne; stderr 0.0199; end; stoch_simul(order=2,irf=40,nograph)y c k inv w rk n r mc pi i re rl loan lev_f nw_f lev_m Welf spread;
%plotting matlab code