diff --git a/doc/dynare.texi b/doc/dynare.texi index c06b434c0..de6c9b2d5 100644 --- a/doc/dynare.texi +++ b/doc/dynare.texi @@ -6308,8 +6308,11 @@ Posterior probability of the respective model @descriptionhead -This command computes and displays shock decomposition according to -the model for a given sample. +This command computes the historical shock decomposition for a given sample based on +the Kalman smoother, i.e. it decomposes the historical deviations of the endogenous +variables from their respective steady state values into the contribution coming +from the various shocks. The @code{variable_names} provided govern for which +variables the decomposition is plotted. Note that this command must come after either @code{estimation} (in case of an estimated model) or @code{stoch_simul} (in case of a calibrated @@ -6335,12 +6338,13 @@ calibrated model. @vindex oo_.shock_decomposition The results are stored in the field @code{oo_.shock_decomposition}, which is a three -dimensional array. The first dimension contains the endogenous variables for -which the shock decomposition has been requested. The second dimension stores +dimensional array. The first dimension contains the @code{M_.endo_nbr} endogenous variables. +The second dimension stores in the first @code{M_.exo_nbr} columns the contribution of the respective shocks. Column @code{M_.exo_nbr+1} stores the contribution of the initial conditions, while column @code{M_.exo_nbr+2} stores the smoothed value of the respective -endogenous variable. The third dimension stores the time periods. Both the variables +endogenous variable in deviations from their steady state, i.e. the mean and trends are +subtracted. The third dimension stores the time periods. Both the variables and shocks are stored in the order of declaration, i.e. @code{M_.endo_names} and @code{M_.exo_names}, respectively.