Dynare forums

Hi All,

I have two basic queries regarding the use of dynare to generate IRF's.

1.) I need a response to say 10% change in one of the endogenous variable. Do I just adjust the standard deviation of the shock affecting this endogenous variable such that it changes by 10% when the shock realises. For example if I have a stock variable 'S'
Can I write something like:

S = a*b - (Steady_state(S))*e_s

Var e_s, stderr 10

Is that a correct way of doing things?

2.) How does one see the response to more than one shock at the same time. Does setting the correlation between the two as 1 does the trick or something else needs to be done.

Any help will be greatly appreciated.

Many Thanks
Umang

Usually you set stoch_simul(...,irf=15). to run different shocks at the same time, you 1st outline them then unblock the shock block.

See http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=2805 and http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=3071 and http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=5082 and http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=3598

Thank you!