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:
var // list of all the endogenous variables (irrelevant for my question)
varexo eA eg ;
parameters ANOss gNOss ro_A ro_g sigma_A sigma_g //among others
. . .
log(ANO) = (1-ro_A)log(ANOss) + ro_Alog(ANO(-1)) + eA;
log(gNO) = (1-ro_g)log(gNOss) + ro_glog(gNO(-1)) + eg;
//among other equations
. . .
var eA = sigma_A^2;
var eg = sigma_g^2;
but I got the following error message: