permanent shock in stochastic simulation

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permanent shock in stochastic simulation

Postby LittleFish » Mon Mar 12, 2012 4:30 pm

http://www.dynare.org/manual/index_18.html

In deterministic simulation, we specify a permanent shock by the use of initval and endval.

But how to specify a permanent shock in stochastic simulation?

Thanks!
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Re: permanent shock in stochastic simulation

Postby kyri82 » Wed Mar 14, 2012 9:04 am

Even though you have a permanent shock, you should type your model in stationary terms, otherwise it cannot be solved. I am not sure if that helps...
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