Hi all!
I am currently performing stochastic simulations for a large-scale model with 37 sectors and I need 3rd order approximations to capture the uncertainty shocks.
The model features:
MODEL SUMMARY
Number of variables: 2520
Number of stochastic shocks: 814
Number of state variables: 814
Number of jumpers: 1
Number of static variables: 1705
However, when running the 3rd order approximations of the following:
stoch_simul(order=3,pruning,periods=0,irf=0,nofunctions);
An error message shows up and informs me to reduce the order of approximations:
Starting Dynare (version 5.1).
Calling Dynare with arguments: none
Starting preprocessing of the model file ...
Substitution of exo lags: added 740 auxiliary variables and equations.
Found 2520 equation(s).
Evaluating expressions...done
Computing static model derivatives (order 1).
ERROR: The dynamic derivatives matrix is too large. Please decrease the approximation order.
It instructs me to decrease the approximation order, which would not work for me as 3rd order is required to generate GIRFs. I still choose to experiment with order=2, and it could be executed (albeit for a long period of time). I wonder is there a way for me to work around this for order=3? Is this generally doable (e.g. using “use_dll”) ?
Thanks in advance!