Temporary, Deterministic Shock Help!

Dynare help (legacy posts)
1

Hello, my name is Yuchen.
I have two country, Ghironi-Melitz (2005) based DGE model.
I want to simulate the model in case negative, temporary, deterministic shock in home country only. I read manual about deterministic shock and it shows I need to set initial values and ending values for the exogenous variables. In my case, I would like to generate 1% negative, temporary, deterministic shock. Then, how do I set initial and ending values? 1 and 0.9?

Another question is that: Can I set auto-correlation parameter for the negative, temporary, deterministic shock in the home country instead of setting initial and ending values?

Thank you.

2

For a temporary shock, you should use initval+shocks. For a permanent shock, use initval+endval.

For a temporary 1% negative shock, put 1 in initval, and 0.9 in shocks (for the periods where the shock applies)

I don’t understand your question about auto-correlation: in a deterministic model, there is are no stochastic moments.

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