Hello,
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:
shocks;
var ksi;
periods 1;
values -0.05;
end;
simul(periods=1000);
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;
to
theta = rho*theta(-1)-ksi;
For simul, I would need the mod-file.
Hello,
Thanks for your reply, i appreciate it.
Please find attached my mod file for simul.
Thank you. 
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.
Hello,
Thank you for your help.
