Hi,

I’ve just got started with Dynare and tried to simulate a model with stochastic shocks on some exogenous variables following an AR(1)-process, say u=rho*u(-1)+v.

I shock v via

shocks;

var v=1;

end;

If I run this simulation, the graph for u always begins with the value 1 in period 0. But if v is stochastic, shouldn’t there be different u-values for t=0 in each simulation?

Maybe this problem is very simple to solve. I hope somebody can help me.

Regards,

itry