Hi, I have several questions, and I apologize for my basic questions:
1)if I want to simulate permanent shocks, there is two way I think:
a)using initval and endval and using simul
b)using persistency parameter to one .i.e:log(P_e)=log(P_e(-1))+epsilon and using stoch simul.
what is the difference between a and b? and which I should use?
2)how to simulate temporary and permanent shock simultaneously? In this context, I need a sample code.
3)I calculate analytically steady state for my model. if I use initval and endval the dynare steady state is different from mine. but if I use the persistency parameters to one, steady-state values are equivalent.
initval and endval dynare code
simulation_nodebt.mod (12.4 KB)
use the persistency parameter to one dynare code
hi.mod (7.7 KB)
very very thanks.