# Simulating DSGE with Markov switching process

**URL:** <https://forum.dynare.org/t/simulating-dsge-with-markov-switching-process/3616>\
**Category:** General DSGE Modeling\
**Created:** [11 January 2014 18:32 UTC](https://forum.dynare.org/t/simulating-dsge-with-markov-switching-process/3616 "2014-01-11T18:32:34Z")\
**Posts on this page:** 1\
**Showing post:** 1

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**Author:** ![nastforest](https://forum.dynare.org/letter_avatar_proxy/v4/letter/n/c57346/32.png) [@nastforest](https://forum.dynare.org/u/nastforest)\
**Post date:** [11 January 2014 18:32 UTC](https://forum.dynare.org/t/simulating-dsge-with-markov-switching-process/3616/1 "2014-01-11T18:32:34Z")

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Hello,

1. 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?

1. I have also been unable to run DH10.mod file, posted in DynareWiki as an example for Markov switching ([dynare.org/DynareWiki/example\_swz](http://www.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.

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