Calender-based regime switch estimation


I would like to ask how I can estimate models with calender-based regime switch in policy. Say, central banks set the nominal interest rate according to Taylor rule during period T0-T20, while during periods T21-T40, the taylor rule will be suspended, with r set to the exogneous level. After T40, the taylor rule is opperative again.

Is that possible with Dynare?

Thank you

Without knowing more details, it is impossible to answer. Are you talking about a regime-switching DSGE model? Or is this a one-time switch in the regime that is either perfectly known or a complete surprise with people not expecting futher regime changes?

it’s a DSGE model, in consideration of regime switch, which has resulted in two seperage models. (crisis and non-crisis)
non-crisis part: when the interest is above the threshold, the central bank sets the interest rate accorrding to taylor rule, the monetary base is a function of credit premium;

crisis part: when the interest rate falls below the threhold, the interest rate is set fixed at the threshhold, but the monetary base is a function of broad money supply.

my question is: it possible to estimate threshold based regime switch with dynare?
2. is it possible to estimate calender based regime switch with dynare?

Thanks in advance!

Dynare is not well-suited for that type of estimation exercise. You should have a look at Junior Maih’s RISE toolbox: