Dear Sir, When I ran the model, I got some strange figures. The curve of some variables presented the characteristics of oscillation convergence as the picture shows. 1.What is the reason of the phenomenon? 2.How Can I understand the result? 3.How Can I make the curve smooth? Y means Output I …

What can account for this result?

jpfeifer October 7, 2021, 9:37am 2

See

Oscilating or alternating IRFs Stochastic simulations

It means that there is a complex eigenvalue leading to oscillations. Usually, when people have this problem in the forum, it comes from them ignoring the Dynare timing convention and then torturing the timing until the BK conditions are satisfied. When doing so, the correct economic timing is ignored and oscillating IRFs result.

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