Multiple Shocks and Multiple Plots (2 Questions)

I have two separate questions:

  1. I want dynare to plot the IRF from two shocks hitting at the same time. How do I implement this? Let’s say the two shock processes are a=rhoaa(-1) + ea and b=rhobb(-1)+eb and I want a 10% shock to a and a 20% shock to b. (I don’t want plots of orthogonalized shocks, which seems to be what is usually plotted).

  2. I have two models: a baseline one and an extended one (which naturally has more equations and some different parameter values). How do I make dynare plot both IRFs on the same set of axes? Should I put each model in a different .mod file? Then what?

Thank you.

  1. See [IRFs - combined effect of two shocks) and the links therein
  2. Run the two mod-files. Save the results separately and then draw the pictures yourself using the plot-command of Matlab and the IRFs stored in the oo_-structure.
  1. So let’s say the two processes are as I originally described and I want the percent shocks described (10 and 20). Do I instead define a new (exogenous) variable ec such that a=rhoaa(-1)+ec and b=rhobb(-1)+2ec and tell dynare to shock ec by (.1)^2?
  2. Could you explain to me how to implement this?

Thank you?

  1. Yes. This should work.
  2. Search the forum. See e.g. [Multiple IRFs on 1 graph)
1 Like