Unexpected shocks in Perfect foresight with "Perfect foresight with expectation errors" command

Dear @sebastien ,

I would like to know if the new command of perfect foresight with expectation errors is the same as implementing what has been done here MIT shocks in deterministic environment - #4 by ghazika1

I have the same two Matlab files as in the previous topic, my code works perfectly that way such that my agents are surprised by the evolution of exogenous variables at each date. But with a huge model, the Matlab files are not really user friendly. So I wondered if I could do the same just with one .mod file with the perfect foresight command and a CSV file for shocks values.

Thank you.

In short, the answer is yes.

The new command perfect_foresight_with_expectation_errors_solver (and its associated shocks(learnt_in=…) and endval(learnt_in=…) blocks) can be used to simulate unexpected temporary or permanent shocks in a perfect foresight setup. So it implements a generalization of MIT shocks. You can do everything in one .mod file, without the need to use MATLAB code.

@sebastien Damn! Thats super good. Many thanks.

When do you plan on having a stable version for Dynare 6?

Our plan is to release Dynare 6 at the end of 2023, or more realistically at the beginning of 2024.

In the meantime, you can use the unstable snapshot if your really need that feature.

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