Help regarding Shocks and IRF's

Hi All,

I have two basic queries regarding the use of dynare to generate IRF’s.

1.) I need a response to say 10% change in one of the endogenous variable. Do I just adjust the standard deviation of the shock affecting this endogenous variable such that it changes by 10% when the shock realises. For example if I have a stock variable 'S’
Can I write something like:

S = a*b - (Steady_state(S))*e_s

Var e_s, stderr 10

Is that a correct way of doing things?

2.) How does one see the response to more than one shock at the same time. Does setting the correlation between the two as 1 does the trick or something else needs to be done.

Any help will be greatly appreciated.

Many Thanks

Usually you set stoch_simul(…,irf=15). to run different shocks at the same time, you 1st outline them then unblock the shock block.

See [Simultaneous shocks) and [Dynare relative irf) and [Shock equations for model written in their non-linear form) and [A question about the IRF)

Thank you!