# Why the starting point of the technology shock to output is negative

**URL:** <https://forum.dynare.org/t/why-the-starting-point-of-the-technology-shock-to-output-is-negative/11813>\
**Category:** General DSGE Modeling\
**Created:** [10 May 2018 09:50 UTC](https://forum.dynare.org/t/why-the-starting-point-of-the-technology-shock-to-output-is-negative/11813 "2018-05-10T09:50:56Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![aibenaimer1](https://forum.dynare.org/letter_avatar_proxy/v4/letter/a/c89c15/32.png) [@aibenaimer1](https://forum.dynare.org/u/aibenaimer1)\
**Post date:** [10 May 2018 09:50 UTC](https://forum.dynare.org/t/why-the-starting-point-of-the-technology-shock-to-output-is-negative/11813/1 "2018-05-10T09:50:56Z")

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Dear all,  
the other aspects of my model seems all right. Why the starting point of technology shock to output is negative? Where is the problem?

![technology%20shock%20to%20out](https://forum.dynare.org/uploads/default/original/2X/b/bf5539d5f78e9d5f85e1b030d64effd547c2f117.jpg)

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [10 May 2018 10:55 UTC](https://forum.dynare.org/t/why-the-starting-point-of-the-technology-shock-to-output-is-negative/11813/2 "2018-05-10T10:55:31Z")

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Without knowing the model, it is impossible to tell what is going on.

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**Author:** ![diana168](https://forum.dynare.org/letter_avatar_proxy/v4/letter/d/ed8c4c/32.png) [@diana168](https://forum.dynare.org/u/diana168)\
**Post date:** [31 August 2022 07:59 UTC](https://forum.dynare.org/t/why-the-starting-point-of-the-technology-shock-to-output-is-negative/11813/3 "2022-08-31T07:59:07Z")

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Dear Professor,  
I meet the same problem with aibenaimer1. Could you please tell me why the starting point of technology shock to output is negative?  
Here is my model:  
[calib6a.m](https://forum.dynare.org/uploads/short-url/d9xBADDGOpxZ64iFzQ4El0ys0Uk.m) (2.4 KB)  
[model6f.mod](https://forum.dynare.org/uploads/short-url/mWvpfyuCpAubhhNXVOrfeKrn7ku.mod) (5.7 KB)  
Hope for your reply.

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [31 August 2022 08:19 UTC](https://forum.dynare.org/t/why-the-starting-point-of-the-technology-shock-to-output-is-negative/11813/4 "2022-08-31T08:19:49Z")

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With a model that size it is impossible to tell. I can only give you the generic advice:

> [@Production negatively react to technology shock](https://forum.dynare.org/t/production-negatively-react-to-technology-shock/20981/4):
>
> You should try to shut of features of the model to see where this comes from. For example, you have a complicated Taylor rule and capital adjustment costs that can be simplified.

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**Author:** ![diana168](https://forum.dynare.org/letter_avatar_proxy/v4/letter/d/ed8c4c/32.png) [@diana168](https://forum.dynare.org/u/diana168)\
**Post date:** [31 August 2022 08:54 UTC](https://forum.dynare.org/t/why-the-starting-point-of-the-technology-shock-to-output-is-negative/11813/5 "2022-08-31T08:54:21Z")

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Thank you very much. I’ll try to simplify the model.