Feeding (estimated) Structural Shocks into an DSGE model

[jpfeifer]

You need to use the simult_.m function for that. See e.g.

Predefined shocks in certain periods with 'simult_' - How? (DSGE)

You initialize the shock matrix. It will always be shock_matrix = zeros(options_.irf,M_.exo_nbr); %create shock matrix with number of time periods in columns Then you set the shocks that you want. The row index sets the time period, the column index the shock: // set shocks for pure news shock_matrix(1,strmatch('eps_z_news',M_.exo_names,'exact')) = 1; %set news shock to 1 (use any shock size you want) sets a shock of size 1 for the first period (therefore in the first row) for the exogenou…