Fiscal Multiplier in Dynare

Stochastic simulations
1

How do you calculate fiscal multipliers in dynare?

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And the multiplier contains a shock which does not appear in the model setting. I don’t understand this part.
FISCAL MULTIPLIERS IN RECESSIONS.pdf (1.6 MB)
Any guidance would be much appreciated.

2

The exact computation depends on the exact type of simulation you are conducting. But the equation above is just the definition of a generalized IRF in that it compares two different simulations paths.