Dear Jpfeifer,

Many thanks for your instant help. Since I am not good at Matlab programming, I am a bit confused about the code in the replication file from your homepage.

[code]/initialize IRF generation

initial_condition_states = repmat(oo_.dr.ys,1,M_.maximum_lag);

shock_matrix = zeros(options_.irf,M_.exo_nbr); %create shock matrix with number of time periods in colums

// set shocks for pure news

shock_matrix(1,strmatch(‘eps_z_news’,M_.exo_names,‘exact’)) = 1; %set news shock to 1 (use any shock size you want)

shock_matrix(1+8,strmatch(‘eps_z_surprise’,M_.exo_names,‘exact’)) = -1; %8 periods later use counteracting shock of -1

y2 = simult_(initial_condition_states,oo_.dr,shock_matrix,1);

y_IRF = y2(:,M_.maximum_lag+1:end)-repmat(oo_.dr.ys,1,options_.irf); %deviation from steady state

// manually select variables for figure

figure

subplot(2,1,1)

plot(y_IRF(strmatch(‘y’,M_.endo_names,‘exact’),:)); % use strmatch to select values

title(‘Output’);

subplot(2,1,2)

plot(y_IRF(strmatch(‘z’,M_.endo_names,‘exact’),:));

title(‘TFP’);

// Automatically loop over variables for figure (may require different setting for subplots in larger models)

figure

for ii=1:M_.orig_endo_nbr

subplot(3,3,ii)

if max(abs(y_IRF(ii,:)))>1e-12 %get rid of numerical inaccuracies

plot(y_IRF(ii,:));

else

plot(zeros(options_.irf,1));

end

title(deblank(M_.endo_names(ii,:)));

end[/code]

I think I need to modify some code to apply my model. How can I draw the IRF of the unrealized news shock to y,n,p_dc,c in my model? Besides, as your JEDC paper, I introduce both 4 period and 8 period news components, how can I set pure news? Moreover, I just generate Bayesian estimated IRF in my code, but it seems that your code file generates simulated IRF. Is it possible to generate Bayesian estimated IRF of unrealized shocks?