I am working on a model without expectations, and only backward equations.
And i would like to study the effects of a temporary shock after which the system
goes back to the original equilibrium (the model is stable).
The stochastic shocks work, but it is not the case for temporary shocks.
Although there isn’t any problem with the transition from an equilibrium to an other
with the use of initval and endval, how could i introduce a temporary shock on this model and
study a go back to the original equilibrium?
stdcap.mod (2.88 KB)
I just would like to know how to simul a temporary shock on this backward model,
with a go back to the original equilibrium.
Should i use an external Matlab file?
Still nobody knows?
I just would like an answer, even a quick one!
How can we simul a temporary shock on backward equations on Dynare (without the use of initval and endval)?
Should i use an external Matlab file? If so, how?
You were mostly right in your mod-file. The problem is that if the shock becomes too large, Dynare does not find a solution. For example with delR=0.079 instead of 0.08 it still works.
stdcap.mod (2.41 KB)
Thank you for the answer.
I tried with a very small shock, but i don’t see any shift on the figures of the
Regarding an external Matlab file, i shall put this command in the mod file:
"shocks(shocks_file = temporary_shock_matlab.m);"
But how can i code the m.file in order to have a temporary shock on backward equations?
Is there already a post dealing with that kind of code?
In my posted example with the small shock to delR, you will see that the variable del moves. Why do you want an external shock file?
Ok, i looked at the example again , but i also fail to see it; i certainly don’t know how
to look at it correctly.