I’d like to compute a taylor curve (efficient policy frontier) with the new keynesian model (IS curve, the new keynesian Phillips curve and the taylor rule). I tried to find the dynare code or program but I don’t. Where can I search for references or examples like that one?
Thanks for your help.
I’m not aware of any publicly available code for efficiency frontier. You need to use OSR to compute optimal simple rule for given a value of the objective function weight. Then you need to do a Matlab loop over different values of the weight. See
This is one of the (rare) cases, where a Matlab loop is more appropriate than a loop using the Macro Language.
You will find the values of the optimal parameters of the Taylor rule in M_.params. M_.params is ordered as in the “parameters” statement.
You need to accumulate results inside the Matlab loop, in order to be able to draw the plot after the loop. All this is done by using Matlab statement inside the *.mod file.
Hope it helps