Dear Johannes,
Thank you very much for your previous help, I am grateful.
I have three questions.
- How to model a structural break in the DSGE model? for example a change in a smaller number of parameters after a known structural break
- After a structural break, given that some parameter values have changed, the steady state value of the DSGE system will also change right?
- If we would like to model a phenomenon that the steady state value of coal consumption has decreased after a structural break, the only thing we can do is to assume that some parameters associated with the calculation of the coal consumption’s steady state have shifted after the structural break?
Thank you very much and look forward to hearing from you.
Best regards,
Jesse