Simulation question


I am trying to simulate the model I am currently working on - I would like to compare dynamics of the variables under a baseline scenario with constant minimum wage relative to the case where minimum wage is increased permanently. In the latter case, minimum wage increases in three increments in 3 years: from 5.15 which is initial value, to 5.85, 6.55 and 7.25 would be endvalue.The change in the wage is deterministic, whereas other shocks in the model are stochastic. Would the right way to model wage be with varexo_det block?

Thank you!

That depends on the information structure. But usually, the answer is yes.

I see, thank you!