Feeding in a sequence of shocks (any suggestions?)


I’m using the “vanilla RBC model” by J. Fernandez Villaverde. Using this model, I’m trying to simulate output given an initial value for capital stock (a particular year in my actual data) and specifying a sequence of exogenous TFP values which I compute seperately following standard growth accounting methods.

This method is based on the following paper by Kehoe (pgs 7-9):


The paper also truncates the model by assuming that the equilibrium converges to the balanced growth path by a given period.

Question: how can I run a simulation starting from an “arbitrarily” chosen value for the capital stock and using an exogenously determined sequence of values for technology (i.e. z in the code mentioned above)?

I’m new to dynare so any help would be greatly appreciated! Best regards,


I think you can use the simult_.m program for this. You can specify the initial values, and the series of shocks, and get the decision rules from oo_.dr.