News Shock

[zhaoningru]

I am doing research on Pigou Cycle. However, it is hard for me to figure out news shock in Dynare. I have several references to read. Unfortunately, I do not have solid foundation in Matlab(all these references use Matlab to simulate news shock). I wonder whether somebody had replicated the paper by Nir Jaimovich and Sergio Rebelo "Can news about the future drive the business cycle" here and help me figure out these codes.

[jpfeifer]

On my hompage you can find a simple Dynare mod-file with news shocks.

[zhaoningru]

On my hompage you can find a simple Dynare mod-file with news shocks.

Thanks for your reply. I have downloaded the .mod from your website. I have a question about the theoretical moments(second) about the results. Should the results of theoretical moments be the moments generated by news shock?

[jpfeifer]

They are the moments generated by all shocks in the model. If you shut off all other shocks, you get the moments generated by the news shocks.