Good afternoon everyone,
I would like to shock my economy with an exogenous variable for which I know the entire path from 0 to T. If I understood correctly, only at period 1 the shock on that variable is unanticipated, while from period 2 to T shocks on that variable are anticipated.
Is there a way to implement an unexpected shock at every period given that the exogenous variable takes different values for each periods? Or should I, given the future path of the exogenous variable, transform my deterministic exogenous variable into a stochastic exogenous variable by somewhat matching the volatily?
The extended path won’t work in my case as the exogenous variable takes different values from 1 to T.
Thank you in advance.