Feed observed shocks to the model


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,

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

useful. Note that the syntax for simult_ has changed a bit in Dynare 4.6. See https://github.com/JohannesPfeifer/DSGE_mod/blob/master/RBC_news_shock_model/RBC_news_shock_model.mod

I might have put this in the wrong category… Im trying to simulate an economy using a neoclassical growth model :slight_smile: , 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)