Normalization of a Shock?

[JustinEloriaga]

Is there anyway to impose a normalization on the shock. For example, Arias, Caldara, and Rubio Ramirez's paper typically imposes a normalization of a 25bps hike in the MP shock identified.

[donotdespair]

Hi Justin @JustinEloriaga

Thanks for reaching out! No, there isn't any automated way of doing this ATM. But once you create the object of class PosteriorIR using the function compute_impulse_responses() you can simply rescale appropriate entries of the NxNx(horizon+1)xS array. If you apply function plot() to such rescaled output it will respect the new entries in the PosteriorIR object. This of course works for teh IRF rescaling. Outer outputs would have to be rescaled accordingly. But it's possible manually.

Let me know if that's clear.

Greetings, Tomasz