Temporary, Deterministic Shock Help!!

This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location where you will have to reset your password.
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.

Temporary, Deterministic Shock Help!!

Postby yuchen85 » Sun Sep 23, 2012 2:26 am

Hello, my name is Yuchen.
I have two country, Ghironi-Melitz (2005) based DGE model.
I want to simulate the model in case negative, temporary, deterministic shock in home country only. I read manual about deterministic shock and it shows I need to set initial values and ending values for the exogenous variables. In my case, I would like to generate 1% negative, temporary, deterministic shock. Then, how do I set initial and ending values? 1 and 0.9?

Another question is that: Can I set auto-correlation parameter for the negative, temporary, deterministic shock in the home country instead of setting initial and ending values?

Thank you.
yuchen85
 
Posts: 1
Joined: Sun Sep 23, 2012 2:07 am

Re: Temporary, Deterministic Shock Help!!

Postby SébastienVillemot » Thu Oct 04, 2012 1:27 pm

For a temporary shock, you should use initval+shocks. For a permanent shock, use initval+endval.

For a temporary 1% negative shock, put 1 in initval, and 0.9 in shocks (for the periods where the shock applies)

I don't understand your question about auto-correlation: in a deterministic model, there is are no stochastic moments.
Sébastien Villemot
Economist at OFCE – Sciences Po
SébastienVillemot
 
Posts: 706
Joined: Fri Dec 07, 2007 2:29 pm
Location: Paris, France


Return to Dynare help

Who is online

Users browsing this forum: Google [Bot] and 4 guests