Hi,I have a DSGE MODEL.I have a permanent shock by setting persistency parameter to1,i.e unit root.
My question is :It is possible to have another temporary shock to another variable.
Thanks
Yes, that is feasible.
Hi,I have a DSGE MODEL.I have a permanent shock by setting persistency parameter to1,i.e unit root.
My question is :It is possible to have another temporary shock to another variable.
Thanks
Yes, that is feasible.