Correct.

But note that the problem is only when the mean is non zero. After all, you might have a truncated distribution with zero mean… The problem with the non zero mean, is that it will shift the mean of the endogenous variables (or at least some of them), so if you linearise around the deterministic steady state (computed by dynare under the assumption that the expectations of the exogenous variables are zero) you are approximating the model around the wrong point (and this will most likely affect the reduced form parameters). A possible workaround would be to provide the steady state in a `steady_state`

block, with the `nocheck`

option so that dynare does not check that the steady state you provide is correct (obviously there is a risk here), artificially adding constants for the non zero mean shocks. Dynare would then compute the correct reduced form, that could be used with the `simult_`

routine.

Best,

Stéphane.