I have been able to construct forecasts when I impose shocks, but the forecasts appear to start from the steady state values. Is it possible to construct forecasts from an arbitrary starting value of the endogenous variable, and not from the steady state? For instance, I would like to forecast output from 3.484 defined below, and not from its steady state value of 0.
output(0) = 3.48447; // 1 indicates the first period of simulation
output(-1) = 4.665;
stoch_simul(order = 1, irf = 20, graph)output;
forecast(periods = 40);
But it seems that in a stochastic model, histval performs the same role as initval? i.e. takes the initial value of 3.484 as an approximation, then finds the exact steady state using a numerical approx method. To avoid that, I removed the line that says “steady”, but the problem still persists.
How can I get forecast of output to start from 3.484, and not from steady state of 0? There are also several other endogenous variables in the system. Do I need to provide values of other endog variables in histval for this to work?