Hello! I have a question regarding OccBin: why is it not possible to apply expected shocks? I noticed that the algorithm does not work in this case, whereas in perfect foresight models, both expected and unexpected shocks can be specified. I would greatly appreciate it if you could help me understand the reasoning behind this, both theoretically and in practice. Thank you in advance for your time and explanation!
Conceptually, that would be straightforward to do with news shocks, which simply augment the state space. But there is no Dynare syntax for doing that automatically and the existing commands do not work with OccBin.
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Thank you so much!