Time dependent shock

General DSGE Modeling
1

Hi all.

I have a question about shocks in determinstic model. I am trying to impose a sequence of deterministic shocks that are function of time. Specifically, the shock looks like

f=e^(b*(t-a))/(1+e^(b*(t-a)))

where t is time and e,b,a are all constants .

Could any one show me how to impose it in the shock block?

Thanks a lot .

2

Try something along the lines of

verbatim;
a=0;
b=0.5;
t=1:10;
shock_sequence=exp(b*(t-a))./(1+exp(b*(t-a)));
end;

shocks;
var epsilon;
periods 1:10;
values (shock_sequence);
end;
3

thanks for your reply. After adding your code to run, I don’t know why there is no impulse response for this shock.

4

Please provide your full code.