Hallo
I want to simulate the impact of a permanent shock.
Using Mathematica, I have calculated the initial and the new steady state.
I have then transfered the values into Dynare.
However, the dynare model with all the equations determining the transition, is not able to find the new steady state.
I have tried some alternatives:
- implementing the new steady state values via the endval block
- only using the shocks block and introducing the new value of the parameter to be shocked for the periods 1:t(with different values for t)
Both alternatives are not able to find the new steady state. Instead there is some kind of explosion.
I would be very grateful for comments!