- Is it possible to simulate a given DSGE model with specified Markov-switching process, i.e. to obtain IRFs for it, without estimating it previously?
In particular, I have a calibrated DSGE model and want to add time-varying volatility of shocks into the it. The uncertainty process calibration has already been implemented elsewhere (Bloom, 2012), so I just want to run my model’s simulation without an estimation step because I want to use Bloom’s calibration. Would that be possible? If yes, how can I do it?
- I have also been unable to run DH10.mod file, posted in DynareWiki as an example for Markov switching (dynare.org/DynareWiki/example_swz). This is the error message:
ERROR: DH10.mod: line 10, cols 27-42: syntax error, unexpected NAME, expecting RESTRICTIONS or CHAIN or DURATION or NUMBER_OF_REGIMES
Error using dynare (line 156)
DYNARE: preprocessing failed
Could you please help me to deal with these two issues?
Thank you in advance.