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Hi all,

I would like to know if it is possible to write a Poisson process in Dynare. I would like to use a Poisson RBC model where tehcnology follows the following rule: "The level of aggregate technology At grows deterministically over time with an exogenous rate g > 0 and is subject to positive stochastic shocks of size gamma in (0,1) which arrive according to a Poisson process (qt) with arrival rate lambda" as in Christoph Schlegel (2004) Business Cycle Models with Embodied Technological Change and Poisson Shocks.

Thank you in advance.

No, it is not possible to write a Poisson process. As you seem to be thinking about a stochastic model where shocks happen by surprise, you might be able to implement this yourself at first order, see the discussion at http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=4788. Due to certainty equivalence at first order, it does not matter for the solution which type of shocks you feed in. The problem will be that you are working with a linear solution, which is not what the article you mentioned did.