Tune Endogenous Variable, then Keep Endogenous After



I’m hoping to get some suggestions for how to do deterministic simulation in Dynare, in which I want to tune an endogenous variable for some period, but then have become endogenous again in other periods. I have tried to find an answer to this question in the Dynare reference, but without luck.

Thank you in advance.


You might be able to work with an endogenous indicator that takes the value 0 if the endogenous variable is shut off and is 1 if not:

var y_endo;
varexp y_exo;

The problem is that such models are hard to solve because the indicator creates discontinuity