RBC model with two shocks

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RBC model with two shocks

Postby LZN » Fri Nov 22, 2013 5:02 pm

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!
LZN
 
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Re: RBC model with two shocks

Postby jpfeifer » Mon Nov 25, 2013 3:31 pm

It depends. You are correctly specifying two independent, uncorrelated shocks entering your model. The first line inside of the shocks block is actually redundant.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
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