How to use extended_path when the values of the exogenous variables are known

Extended Path
1

Dear all,

I want to compute the solution of a model that includes the ZLB and some exogenous dummy variables (the dummies control some behaviour of the agents). Is it possible to run the extended_path algorithm imposing the values for the dummies? I found this post Extended path and 'deterministic' exogenous variables but I am not sure how everything turned out.

Best regards

2

What exactly do you mean? The post you reference works with varexo_det, i.e. there are exogenous shocks whose value is perfectly known in advance. That cannot be done with extended_path