Calibration based on variance decomposition


I would like to seek your help in addressing the below comment,

“Produce a variance decomposition and a table of persistence properties of the key aggregates of the economy under consideration, and then try to generate a calibration of the AR1 coefficients and standard deviations of the main shocks to match those data reasonably well.”

Is it possible to do this in dynare? If yes, please could you detail about the method.

Many thanks

stoch_simul will usually provide the required output. The rest is just a matter of trial and error in setting the parameters. You could do a formal moment matching but that is usually an overkill in this case.