I am doing research on Pigou Cycle. However, it is hard for me to figure out news shock in Dynare. I have several references to read. Unfortunately, I do not have solid foundation in Matlab(all these references use Matlab to simulate news shock). I wonder whether somebody had replicated the paper by Nir Jaimovich and Sergio Rebelo “Can news about the future drive the business cycle” here and help me figure out these codes.
On my hompage you can find a simple Dynare mod-file with news shocks.
Thanks for your reply. I have downloaded the .mod from your website. I have a question about the theoretical moments(second) about the results. Should the results of theoretical moments be the moments generated by news shock?
They are the moments generated by all shocks in the model. If you shut off all other shocks, you get the moments generated by the news shocks.