Hello everybody! I have a model for which I have already found steady state and IRFS. Then, I have simulated time series for 2 variables of interest (price and output) in response to a technological shock, plotted them in a cartesian graph and drawn a line of best fit (loosely speaking it should be a Phillips curve). Now I have also performed the same same steps in response to a demand shock. As a third step, I simulated prices and output as obtained from the model in the case of both shocks and plotted simulated output and prices in a cartesian graph. Of course, the fitted line has an intermediate slope as the two shocks tend to generate an opposite correlation between prices and output. Since I have no information on the relative importance of the two shocks in real world, I would like to present a graph in which I have on the y-axis the slope of inflation on output and on the x-axis the ratio between the variance of the two shocks.
I guess I should loop in some way my commands for different values of the variances. But I do not know exactly how to do it. Do you have any suggestion?
Thank you in advance
A starting point usually is