Dynare forums

Hi,

I've just got started with Dynare and tried to simulate a model with stochastic shocks on some exogenous variables following an AR(1)-process, say u=rho*u(-1)+v.

I shock v via

shocks;
var v=1;
end;

If I run this simulation, the graph for u always begins with the value 1 in period 0. But if v is stochastic, shouldn't there be different u-values for t=0 in each simulation?

Maybe this problem is very simple to solve. I hope somebody can help me.

Regards,

itry

Hi itry,

I think what you want to do is this:

Code: Select all

shocks;
    var v; stderr 1;
end;

This will declare that the variable v has a standard error of 1. If you do that, I think it should work.

Cheers,
AS