how to get picture IRF to 1% decrease in total prodctivity

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how to get picture IRF to 1% decrease in total prodctivity

Postby wanghao19820707 » Thu Dec 27, 2012 11:34 am

Dear All:
I am new to Dynare.How to get picture of IRF to 1% decrease in total prodctivity ?
The total prodctivity follows a function:lnA(t)=rho*ln(A(t-1))+epsilon(t)
May I use command as follows:
shocks;
var e;
stderr 0.01;
end;
stoch_simul;

Thank you very much!
wanghao19820707
 
Posts: 19
Joined: Tue Jan 03, 2012 4:07 am

Re: how to get picture IRF to 1% decrease in total prodctivi

Postby nini » Thu Dec 27, 2012 10:16 pm

Dear Wanghao,

I think you can use that,but I noticed 2 things. If I understand it correctly epsilon is exogenous variable, so shocks block should go like this:

shocks;
var epsilon;
stderr 0.01;
end;
stoch_simul;

Secondly, in order to have decrease of 1 percent you should have - instead of + infront of epsilon in total productivity function.

Best
nini
 
Posts: 6
Joined: Tue Aug 07, 2012 6:29 pm

Re: how to get picture IRF to 1% decrease in total prodctivi

Postby wanghao19820707 » Sun Dec 30, 2012 1:32 am

Dear Nini:
Thank you very much for your comment.Yes,epsilon is exogenous variable and I just use e for convenience.And thank you for correction for - instead of + infront of epsilon in total productivity function.

Best wishes
wanghao19820707
 
Posts: 19
Joined: Tue Jan 03, 2012 4:07 am


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