Calculated the optimal coefficients

[jpfeifer]

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

Loop over parameters to find maximized welfare

In your case, you only need to read out the welfare. As you are not computing a consumption-equivalent, you do not need the function I write. Welfare is a stochastic property of the model, but you are reading out the steady state instead of the unconditional mean. The steady state will always be the same. You need to read out the respective element of oo_.mean and for that cannot use nomoments. Also, you need to add welfare to the variables after stoch_simul to get its moments. Are you sure you…