Deterministic shocks in linear model

Dynare help (legacy posts)
1

Hi,

I would like to feed deterministic models into a linear model. The trouble is, the deterministic simulation solves the whole thing non-linearly and this takes forever and the stochastic version does not do deterministic simulation if the model has more than one lag (which mine does). Is there any way around it?

Also, I would like to feed in the deterministic shock from an outside file. Seems like the shocks_file option is no longer available? What would be the way to do it? (a pointer to a previous discussion would suffice if that is still valid procedure, I just have the impression that the discussions I found were all for dynare 3. . .)

Thanks!

2

Hi,

I am dealing with the problem by making the shock process an MA and setting the parameters of the MA according to the deterministic sequence. Seems a bit involved, but it should work. Still wondering if there is a more direct way of doing this…

Felipe