Economies of scale

Hello everyone, Thank you for browsing my post.

I have three problems about economies of scale in the DSGE model.

1.Could economies of scale shocks be included in the DSGE model?
2.How to depict the change of enterprise size in the model?
3.If possible, could you recommend some related literature?

If you know the answer, please reply me,thank you.

Without more context what you are trying to do, it’s impossible to tell.

I want to characterize economic agglomeration in the DSGE model. Economic agglomeration will lead economies of scale. The larger the company, the lower the average cost of the product.
I want to use economies of scale shocks as proof that the economy is gathering.
Could you please tell me Is there any other way?In addition to change the parameters of the production function?

Why do you need shocks for that? That sounds like a simple comparative statics exercise. In any case, you can study the transition behavior easily with a perfect foresight simulation.