# Simulation question

**URL:** https://forum.dynare.org/t/simulation-question/22971
**Category:** Stochastic simulations
**Created:** [24 August 2023 10:50 UTC](https://forum.dynare.org/t/simulation-question/22971 "2023-08-24T10:50:21Z")
**Posts on this page:** 3
**Page:** 1

<div class="post-metadata">

### Author: ![Kasper](https://forum.dynare.org/letter_avatar_proxy/v4/letter/k/eada6e/32.png) [@Kasper](https://forum.dynare.org/u/Kasper)
#### Post date: [24 August 2023 10:50 UTC](https://forum.dynare.org/t/simulation-question/22971/1 "2023-08-24T10:50:21Z")

</div>

Hello,

I am trying to simulate the [model](https://forum.dynare.org/t/problem-finding-the-steady-state/22930/7) 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!

---

<div class="post-metadata">

### Author: ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [24 August 2023 11:33 UTC](https://forum.dynare.org/t/simulation-question/22971/2 "2023-08-24T11:33:40Z")

</div>

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

---

<div class="post-metadata">

### Author: ![Kasper](https://forum.dynare.org/letter_avatar_proxy/v4/letter/k/eada6e/32.png) [@Kasper](https://forum.dynare.org/u/Kasper)
#### Post date: [24 August 2023 12:14 UTC](https://forum.dynare.org/t/simulation-question/22971/3 "2023-08-24T12:14:57Z")

</div>

I see, thank you!