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>> load kp1980_2.mat
>> shocks = zeros(1,100);
>> ystart = dyn_ss;
>> ystart(dyn_i_MULT3) = 0;
>> r=dynare_simul('kp1980_2.mat',shocks,ystart);
After simulating we get r in matrix form. How to get the irfs from the simulation when shocks and the bacward looking multipliers are set to 0?
The above code sets the backward looking lagrange multipliers and shocks to 0. Now when I look at the dynare_simul.m file it says that the shocks are permanent shocks, so does that mean the shock (VAREXO EPS) in the example of the document is a temporary shock with variance 0.01 ?
If i want to make the shocks same as in the mod file shocks what do I do ? Do I set the shocks as 0.01 (variance) or 0.1 (standard error) ?