permanent stochastic shock, impulse responses

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permanent stochastic shock, impulse responses

Postby monad » Tue Aug 28, 2007 9:46 pm

Dear All,

I am completely new to Dynare. In fact I am busy building my first DSGE model. I was wondering if it is possible to get impulse responses of the economy which is governed by the permanent stochastic shock (within my model I would like to see what happens to variables like inflation differential or real exchange rate once an economy is hit by the permanent stochastic productivity shock). Also, is it possible to have more than one permanent stochastic shock in the model (from the practical point of view)?

I could assume that the permanent shock is expected, but I would like to compare the results obtained under both specifications?

Thank you very much for all the potential hints and help.
Monika
monad
 
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