I have two types of shocks in my model: stochastic (AR(1) processes) and deterministic (an i.i.d. shock).

I was wondering whether there is a way to feed just the deterministic shock through a .mat file (shocks_file ??) *while* letting Dynare compute the stochastic shocks for me.

The reason why I don’t want to feed all the shocks from an exogenous file is because I want to do stochastic simulations.

The deterministic shock (eN) is just an i.i.d. shock that is equal to 0.1086 in period 1 and zero from then onwards. I tried typing it in as:

[code]

var // list of all the endogenous variables (irrelevant for my question)

varexo eA eg ;

varexo_det eN;

parameters ANOss gNOss ro_A ro_g sigma_A sigma_g //among others

. . .

model;

log(ANO) = (1-ro_A)*log(ANOss) + ro_A*log(ANO(-1)) + eA;

log(gNO) = (1-ro_g)*log(gNOss) + ro_g*log(gNO(-1)) + eg;

//among other equations

end;

. . .

shocks;

var eA = sigma_A^2;

var eg = sigma_g^2;

var eN;

periods 1;

values 0.1086;

end;[/code]

but I got the following error message:

Any suggestions?

THANKS!

-AP