Introducing an exogenous shock

Stochastic simulations
1

Hi,

I’m trying to add a term premium shock to an interest rate relevant to shadow banks. Essentially adding a shadow banking block to Gertler Karadi 2011. But Dynare isn’t giving me the corresponding IRFs for the TP shock. It’s merely showing a graph of the term premium spiking up.

How can I see its impulse response on the other variables (y,c,i etc)?

2

Typically that means that the IRF of those variables is zero, i.e. your shock does not have the expected effect on these variables.