mshocks

mshocks — specifies multiplicative deterministic shocks on exogenous variables

Synopsis

mshocks ;
[ var VARIABLE_NAME; periods INTEGER [:INTEGER] [[,] INTEGER [:INTEGER]...]; values EXPRESSION [[,] EXPRESSION...]; ...]

end ;

Description

The purpose of this command is similar to that of the shocks for deterministic shocks, except that the numeric values given will be interpreted in a multiplicative way. For example, if a value of 1.05 is given as shock value for some exogenous at some date, it means 5% above its steady state value (as given by the last initval or endval block).

This command is only meaningful in two situations:

  • on exogenous variables with a non-zero steady state, in a deterministic setup,

  • on deterministic exogenous variables with a non-zero steady state, in a stochastic setup.