Simulating economy
Posted: Sun Sep 04, 2011 5:22 am
Hello everybody,
I am trying to simulating my DSGE since I am including an idiosyncratic shock. I have solved it by Dynare and now I am trying to using the policy functions (by Dynare) and randomly generated shocks to simulate the economy (in Matlab). I would be able if I had just one state variable (beyond the shocks), but I have two state variables, so I do not know how to do it. Does anybody have any suggestions?
Thank you
Best regards
Andrea
I am trying to simulating my DSGE since I am including an idiosyncratic shock. I have solved it by Dynare and now I am trying to using the policy functions (by Dynare) and randomly generated shocks to simulate the economy (in Matlab). I would be able if I had just one state variable (beyond the shocks), but I have two state variables, so I do not know how to do it. Does anybody have any suggestions?
Thank you
Best regards
Andrea