NEWS shocks in a deterministic model

[haidx2112]

Hi,
I am coding dynare code for my model. In my model there is a financial constraint debt<=theta*income.
1. I wrote a dynare code and it works well with the case that at period 0, there is a news about change in theta in the future (anticipated shock). For example, at the period 0 we know that theta will remain at 60% for 15 periods then from period 16 it will jump to 70% and stay there forever

code: theta=0.6 + e;

initval
e=0;
end;
endval
e=0.1;
end;

var e;
periods 1:15
values 0;
end;

2. Now, I want to introduce 2 news shocks into my model. For example, at period 0 we know that after 15 periods, theta will jump to 70% and stay there forever. However, at a period t i.e 5 6 or 16, 18, we may know another news that theta will be 65% from period 19 or 20 instead of 70% as we know before. Is it possible to code this in dynare?

Thank you for your helps.

[haidx2112]

Hello, anybody help me, please.

[jpfeifer]

Unfortunately, this is not easily possible, because the perfect foresight setup models all shocks as already known of today. You may have to build the response by concatenating responses from two experiments, i.e. the response for the first part up to the point where the second shock realizes and then a separate simulation with both shocks starting with the states from the first simulation.

[haidx2112]

Thank you for your help. I will follow your guide