Where Shocks are read from in Rerun and Policy

When the software prepares for the Rerun and the Policy, shocks must be given to ensure that the values of the variables which are exogenous in the policy closure are the same as in the base case. Normally this is done by writing the shocks explicitly (one component at a time) into the .BOT files which are used to make the Command files for the Policy and Base Rerun.

If you select option Use SOL files for shocks, these shocks will be read from a Header Array file (referred to as a SOL file since it is produced by running the GEMPACK program SLTOHT). This may result in slightly faster running since the shocks will be read more quickly.

You should not select this option unless you are using Release 7.0 or later of GEMPACK since it was not possible to read shocks from a Header Array file in earlier releases of GEMPACK.

If you are using Release 7.0 or later of GEMPACK, RunDynam will encourage you to use SOL files for shocks since it is faster and produces much smaller .BOT files for large models.

If you have selected option Use SOL Files for Shocks, the so-called SOL file is given suffix .RSL and its name is based on the 3-character Sim Name for the Rerun (or Policy if you are not rerunning the Base with Policy closures) and the year. For example, if the 3-character Sim Name for the Rerun is BR1 then the SOL file used for shocks in the simulations for year 2000 of the Rerun and the Policy is BR1R2000.RSL. [The names of these SOL files were changed in October 2003.]

The .RSL file for any year is created during the so-called bot job which is run just before the simulation for that year from the Rerun (or the Policy if you are not rerunning the Base with Policy closures).

URL of this topic: www.copsmodels.com/webhelp/rundynam/hc_wherereadshocks.htm

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