In my model, there are two sectors of intermediate firms, state-owned firms and private firms. Both two sectors will suffer technoloty shocks, AS and AP, respectively. AS and AP have the same AR(1) process. So I have a question. When I simulate the model, I have two choices:
(1) Add AS to S firms and add AP to P firms, respectively;
(2) Add AS to both S and P firms.
In my opinion, the two choices are the same. But in the first choice, there are two pieces of impulse response figures. In the second choice, there is only one pieces of impulse response figure.
In fact, I want to analyze how the variables respond to shocks that both firms are suffering at the same time.
Could you please tell me?
Thanks very much!