Two shocks happen simultaneously

Stochastic simulations
1

Hi, my question is very similar to this one Two shocks simultaneously in a model . I have uploaded my mod file, I want two shocks in my model (ea and ei) happen simultaneously, what shall I do. I have read the relevant question, I can sum ea and ei to generate joint shock, but I still don’t know specifically how to generate the linear combination.

I should generate ea+ei in shock block? Or create another exogenous shock?

NK_sticky_taylor.mod (3.3 KB)

2

I am working with a linearized model (order=1)

3

Did you try using the simult_-function as outlined in the linked post?

4

Thanks for your reply, but I don’t know how to use simult_ function, and sadly I don’t understand your example. Is there any guidance for this function?

5

You can follow the example. The only part you have to change in DSGE_mod/RBC_news_shock_model.mod at master · JohannesPfeifer/DSGE_mod · GitHub
is the shock_matrix.