Hello everybody,

I’m currently designing a model with 6 different stochastic shocks. However, I am only interested in getting the IRFs for one particular shock at a time. From what I read on the user’s guide, I’m not sure it will be the case if i use the basic ‘shocks’ block (except if i specify zero variance for the shocks I’m not interested in). In addition, I would like to obtain my IRFs only in terms of percentage deviation from steady-state (i.e., following a, say, 1% positive deviation from steady-state of some exogenous variable, obtaining the IRF’s of the endogenous variables, also in percentage deviation). The guide seems to say that ‘mshocks’ can do this job: for example, using 1.01 as a shock value for an exogenous variable would implment a positive 1% shock. However, the guide does not say exactly how an ‘mshocks’ block should be formulated. Maybe it’s merely replacing ‘shocks’ by ‘mshocks’, but I’m not quite sure about that…

So my questions are:

1)Is ‘mshocks’ the best way to obtain the irfs for one particular shock only?

2) How should we formulate an ‘mshocks’ block?

3) Does it gives all IRFs in terms of percentage deviation?

Thanks for any help!