Simulate a model outside dynare using log linearised equations

General DSGE Modeling
4

A couple of thoughts:

  1. The BK conditions are for a rational expectations equilibrium. If you use adaptive expectations, the logic is different as you are removing the forward-looking part yourself.
  2. The point of the BK conditions is that the Burns period allows for indeterminacy and therefore sunspot shocks. That prevents a standard simulation.
  3. You may be able to manually introduce the sunspot. See Sunspot Shock In Gali, Lopez-Salido, Valles (2004) - #2 by jpfeifer