The RATS Software Forum

Hi Tom,
One more question please,
I run the orginal figure6 program with negative delta. So that i got the response of gdp to oil price decreases.
however the strongest response is with one st dev. and the response tends to decrease with the magnitude of the shock which is different than the expected.
I find similar decreasing responses with negative delta in my own work. Is this because of the way the modeling is structured?
any suggestion/explanation very appreciated.
thanks

From the description:

Note well that the responses are all re-scaled to a common size---due to asymmetry the response to a 10 standard deviation shock will not be 10 times the response to a one-standard deviation shock, but by rescaling, you will get an idea as to the difference in the shape of the response due to the non-linearity.