Hello Professor, I have a question about Blanchard & Kahn conditions . I use matlab to find the steady state of the model, and then use dynare to run the linearized model. When variable faiL_@{nos} and coefficients bar_faiL@{nos} bar_L@{nos} are not added, the program runs normally. After adding…

In the third period, the economy faces two capital shocks, but also two investment shocks, and investment should not be reduced by 100 percent, but by 50 percent, right? But with simul_ to make, the result is directly the superposition of the two impact investment results, what should I do?

Dynare with Blanchard & Kahn conditions

General DSGE Modeling

jpfeifer 31 December 2023 09:44 7

I see. Then you need to define a surprise and a one-period anticipated news shock and then use simult_ to define the simulation scenario. See