Dear Prof. Pfeifer,

I would like to compute the moments of model variables following multiple shocks occurring simultaneously. I have extended an existing model (with one shock) to include 3 other exogenous shocks. Please see the cycle_irf.mod file.

My questions are regarding the Dynare output. Is the output produced for all four shocks occurring simultaneously? How do I vary the output to change the number of shocks occurring?

I find that when I alter the standard deviation of one or more shocks, or comment out a shock, the policy functions do not change which I don’t understand.

Also, I would appreciate if you could provide me with a resource on implementing multiple shocks in Dynare and understanding the output.

Thanks in advanceFiscal_shocks_2nd_moments.zip (1.1 MB)