Adding a negative shock


I need to add a 1 period negative shock (of 5%) to the AR(1) process in my open economy model . i used for that the commands:
var ksi;
periods 1;
values -0.05;

but i can’t obtain my IRFs.

to make a comparison, i used the commad stoch_simul with stderr 1. in such case i can run my programm and obtain my IRFs, but how can i add a negative shock? (stderr can never be negative!).

Please can you help?

RBC1.mod (1.26 KB)

For stoch_simul, change the

theta = rho*theta(-1)+ksi;

theta = rho*theta(-1)-ksi;

For simul, I would need the mod-file.

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Thanks for your reply, i appreciate it.

Please find attached my mod file for simul.

Thank you. :stuck_out_tongue:
RBC1.mod (1.24 KB)

How about following Matlab’s and Dynare’s precedence rules and setting the brackets correctly in e.g.

yss = (a*(alpha*beta/1-beta*(1-delta))^alpha)^1/(1-alpha);
in order to not obtain complex steady state values. Apart from that the code runs correctly.

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Thank you for your help.