Is there any update on this? I want to generate IRFs in response to oil-price shock at different levels of Rhat (see figure)
Spread-eps-converted-to.pdf (8.0 KB)
I have had a look at the following file RBC_state_dependent_GIRF.mod but I am not sure if this is what I need…
It seems that whether capital is 10% below its steady-state or not has no effect on the starting value of other endogenous variables in the model… I want the starting value of all endogenous variables to be model-consistent with the arbitrary value of capital I choose… In other words, I want to shock the system when the system is at a certain point on the state-space consistent with capital being 10% below the steady-state.
I can imagine how to do this. I first need to workout the exact point on state-space for which capital is 10% less than steady state. I then need to use the decision rules to workout the values for remaining endogenous variables. Does this make sense?
Any help will be great.