Dear dynare team, here I want to ask a question, I saw many people use Schmitt-Grohe and Uribe (2004,2007) to calculate the optimal policy coefficients based on welfare-maximizing rules. In the forum and dynare example reference I saw some use dynare osr or more complex approach, i.e., useing some optimizer fmincon, csminwel, cmaes for external function file to solve policy function coefficient. I use the dynare approach but my results are not same with the paper which use SGU’s approach. Thanks a lot.

And paper numerically compute welfare at the non-stochastic steady state using a second-order approximation of the utility functions of the households in the economy. I use the dynare command , but the results are differ. Why?

I am not sure I understand the question. What exactly are you doing and where do the results differ? For distorted steady states the OSR-command of Matlab is not suitable. You would need to proceed with a nonlinear model and the maximize the objective. See for example the post