Feed observed shocks to the model

[oskarlund]

Hi

I have a few questions regarding using dynare for a neoclassical growth model.

I’m trying to run a model, and then feed in observed shocks to TFP, tax rates and government expenditure, and then compare the model’s result with the observed reality. First of all, i’m not sure how i can get Dynare to load the shocks from an excel file or another matlab document?

Best regards,
Oskar

[jpfeifer]

Within mod-files, you can use Matlab code to load anything you want. To feed in observed shocks, you need the simult_-function. You might find

Choosing initial values for simult_

Please try clear; close all; clc dynare jules1.mod %set shocks ex_=]; for shock_iter=1:M_.exo_nbr ex_=[ex_ oo_.SmoothedShocks.Mean.(deblank(M_.exo_names(shock_iter,:)))]; end %use shocks only starting at t=2 due to t=1 being initial condition ex_ = ex_(2:end,:); %set starting values y0=]; for endo_iter=1:M_.endo_nbr y0 = [y0; oo_.SmoothedVariables.Mean.(deblank(M_.endo_names(endo_iter,:)))(1)]; end; %make sure decision rules were updated [oo_.dr,info,M_,options_] = resol(0,M_,options_,oo_…

useful. Note that the syntax for simult_ has changed a bit in Dynare 4.6. See DSGE_mod/RBC_news_shock_model/RBC_news_shock_model.mod at master · JohannesPfeifer/DSGE_mod · GitHub

[oskarlund]

I might have put this in the wrong category… Im trying to simulate an economy using a neoclassical growth model , using actually observed shocks to TFP, tax rate, population growth and government expenditure

Thanks… So i managed to import the time series of the exogenous variables for tax rate, population growth, TFP growth and government expenditure (share of output) with the initval_file function.

However the output of the model seems to be generating some output that is a bit off compared to the observed data, and i’m abit confused if there is anything obvious i’m doing wrong with the scales?
I’m normalizing the total endowment of hours to 1, and inputting government expenditure as a share of y.
model.mod (2.7 KB) obsvar_mat.mat (4.6 KB) exovar_mat.mat (2.3 KB)