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:
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.
Thanks for your reply, i appreciate it.
Please find attached my mod file for simul.
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.