Is it possible to use a shock with mean different from 0 in dynare? I have seen on dynare.wiki that the command “normcdf(x,m,s)” is for normal cumulative distribution function with mean m and standard deviation s, but I don’t know how to apply it to my shock.
Thank you in advance
Andrea
Dear Andrea,
This is not possible. The exogenous variables are assumed to be zero mean. If you want to shift the mean you can add constants in your equations…
Best,
Stéphane.
Thank you very much for the information and the suggestion
Andrea