Why Dynare does not provide the IRF of some variables.Does this indicate a flaw in the model?For example, my model does not provide an investment graph.withtaylorandspreadtimngvagheandorost.mod (4.9 KB)
Normally, Dynare does not show IRF’s for variables that are either constant, i.e. do not react to the shock, or explosive.
Is the unit root you have there part of the model?
Thank you for your response. I apologize for asking two separate questions about this.The existing unit root is not part of the model.
What should be done to solve the unit root problem in Dynare? Thanks for guiding me.
Most often it means that you have a redundant equation but are missing an important one. Adding
model_diagnostics; after steady and check will give you more information. Since it is a relatively large model it is hard to tell which equations that could be. Normally a good strategy is to start from a working version, most likely you extend some model, and add your new features one by one.
For one, I get
MODEL_DIAGNOSTICS: The following endogenous variables aren't present at the current period in the model: i_bd
which indicates a serious issue with your timing in the model. You may want to start with a simpler model.