I would like to see in my model the effects of the policy Intervention such as an unexpected increase in bank capital while there has been a negative shock on housing price from a couple of earlier periods. I don’t know how to implement this experiment in Dynare. Should I use Matlab functions, it would be great if you guide me how to proceed it.
Thank you in advance.
First, you make sure your model runs with stoch_simul with an unexpected increase in bank capital starting from the steady state. The same must work with a price shocks. When these two IRFs works, you can use the simult_ function of Dynare to simulate a sequence of these two shocks.
Thank you for your quick reply. I have one question. I’ll try it.