Technology with Poisson process

[cee]

Hi all,

I would like to know if it is possible to write a Poisson process in Dynare. I would like to use a Poisson RBC model where tehcnology follows the following rule: "The level of aggregate technology At grows deterministically over time with an exogenous rate g > 0 and is subject to positive stochastic shocks of size gamma in (0,1) which arrive according to a Poisson process (qt) with arrival rate lambda" as in Christoph Schlegel (2004) Business Cycle Models with Embodied Technological Change and Poisson Shocks.

Thank you in advance.

[jpfeifer]

No, it is not possible to write a Poisson process. As you seem to be thinking about a stochastic model where shocks happen by surprise, you might be able to implement this yourself at first order, see the discussion at http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=4788. Due to certainty equivalence at first order, it does not matter for the solution which type of shocks you feed in. The problem will be that you are working with a linear solution, which is not what the article you mentioned did.