Counterfactual response

Stochastic simulations
1

Hi everyone,

Does anyone know if it possible to do a counterfactual simulation where the response of one variable is shut down following a shock?
Suppose a model with housing where there is housing rental price. Can one shut down the response of the housing rental price following a monetary policy shock for example (or at least keep it at its steady-sate value) and get the implied response of the remaining variables?
(note that I am working with a log-linear model so a steady-state rental price = 0 which I think will give NaN or different than 0 residual)

Thank you

2

That is generally not feasible unless there is a shock that can be used to control the movement of the variable that you want to fix.