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RBC model with two shocks

PostPosted: Fri Nov 22, 2013 5:02 pm
by LZN
I need to run a model with two shocks.
Is it correct to specify the structure as follows?

shocks;
var e_a e_g;
stderr e_a 0.009;
stderr e_g 0.009;
end;

Thank you!

Re: RBC model with two shocks

PostPosted: Mon Nov 25, 2013 3:31 pm
by jpfeifer
It depends. You are correctly specifying two independent, uncorrelated shocks entering your model. The first line inside of the shocks block is actually redundant.