Deterministic permanent shock after 5 periods

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Deterministic permanent shock after 5 periods

Postby Philipp » Mon Nov 04, 2013 3:21 pm

Hi there,

please help me out with a little problem I have here:
I want to simulate a simple deterministic permanent shock that occures not in period 1 but say in period 5.
How can this be done?
I used initval; and endval; to specify the permanent shock, but as I interpret the output the permanent shock happens in period 1, which is not exactly what I would like.

Thanks for your help.
Philipp
Philipp
 
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Re: Deterministic permanent shock after 5 periods

Postby jpfeifer » Mon Nov 04, 2013 4:16 pm

You are solving under perfect foresight. Agents know that in period 5 there will be a permanent shock and react today. What you want to have is a permanent shock at time 1. Before that, all variables will simply be at their initial conditions.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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Re: Deterministic permanent shock after 5 periods

Postby Philipp » Tue Nov 05, 2013 7:13 am

Dear jpfeifer,
thanks for your prompt reply. I always appreciate your help very much.
So I guess what I wanted is only a plot problem, which rplot cannot handle: I wanted something like for t=-10:0 to be at the initial steady state and from t=1:... to be at the new level. In this way, the drop (increase) after the shock would be visible.
I will need to compute this in a separate m.file, no big deal.
Best, Philipp
Philipp
 
Posts: 36
Joined: Mon Apr 18, 2011 9:01 pm
Location: State Secretariate for Economic Affairs

Re: Deterministic permanent shock after 5 periods

Postby jpfeifer » Tue Nov 05, 2013 9:40 am

In principle, you should be able to access oo_.dr.ys before running simul. This should provide you with the initial condition.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany


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