I am coding dynare code for my model. In my model there is a financial constraint debt<=theta*income.
- I wrote a dynare code and it works well with the case that at period 0, there is a news about change in theta in the future (anticipated shock). For example, at the period 0 we know that theta will remain at 60% for 15 periods then from period 16 it will jump to 70% and stay there forever
code: theta=0.6 + e;
- Now, I want to introduce 2 news shocks into my model. For example, at period 0 we know that after 15 periods, theta will jump to 70% and stay there forever. However, at a period t i.e 5 6 or 16, 18, we may know another news that theta will be 65% from period 19 or 20 instead of 70% as we know before. Is it possible to code this in dynare?
Thank you for your helps.