Difference in specifying equations

Stochastic simulations
#1

I wanted to ask if the following two are similar. I ran IRFs and both of them gave me the same plots. However, it differs in the “policy and transition functions”.

The first one:

pi = RHO*pi(-1)+ e;
shocks;
var e; stderr=0.25;
end;

The second one:

sig_e = 0.25;
pi = RHO*pi(-1)+sig_e * e;
shocks;
var e; stderr=1;
end;

#2

That is expected, because you rescale the impact of the shock e. But the specifications are isomorphic.

#3

Great, thanks for your reply.