Shocking 2 variables at the same time - possible?

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Shocking 2 variables at the same time - possible?

Postby rteconomics » Fri Jan 18, 2013 3:19 pm

Hi guys,
I'm working on a rather typical 2-country DSGE model (with intermediate sector).

I'm trying to shock the system in a non-conventional way. Specifically, I'd like to shock the endowment of both goods (the home commodity and the foreign commodity) at the same time.

Is this possible in Dynare? I know that shocking each of them separately is easy (and I did it with no problem) but both at the same time?
Thanks!
RT
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Re: Shocking 2 variables at the same time - possible?

Postby jpfeifer » Fri Jan 18, 2013 5:01 pm

You are talking about perfectly correlated shocks. See http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=2574
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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Re: Shocking 2 variables at the same time - possible?

Postby rteconomics » Sun Jan 20, 2013 10:02 am

Thank you, perfect!
RT
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