# Consumption equivalence across different models **URL:** \ **Category:** Stochastic simulations\ **Created:** [21 November 2023 12:29 UTC](https://forum.dynare.org/t/consumption-equivalence-across-different-models/24569 "2023-11-21T12:29:11Z")\ **Posts on this page:** 10\ **Page:** 1
**Author:** ![dh.murakami](https://forum.dynare.org/letter_avatar_proxy/v4/letter/d/58956e/32.png) [@dh.murakami](https://forum.dynare.org/u/dh.murakami)\ **Post date:** [21 November 2023 12:29 UTC](https://forum.dynare.org/t/consumption-equivalence-across-different-models/24569/1 "2023-11-21T12:29:11Z")
I’m currently trying to numerically compute consumption equivalence across two regimes (tax and no tax). Using the code from Born and Pfeifer (2018) as reference, I’ve set up a function to calculate the CE factor: ```auto function outvalue=get_consumption_equivalent_unconditional_welfare(par_value_lambda_ce) global base_oo base_options base_m permtax_oo permtax_options permtax_m if par_value_lambda_ce>1 outvalue=1e5+par_value_lambda_ce^2; end set_param_value('lambda_ce',par_value_lambda_ce) %set consumption equivalent lambda var_list_ = {'UTIL','V_CE'}; [info1,oo1] = stoch_simul(base_m, base_options, base_oo, var_list_); %get decision rules and moments [info2,oo2] = stoch_simul(permtax_m, permtax_options, permtax_oo, var_list_); %get decision rules and moments if info1(1) outvalue=1e5+par_value_lambda_ce^2; return; end if info2(1) outvalue=1e5+par_value_lambda_ce^2; return; end betta = base_m.params(strmatch('betta',base_m.param_names,'exact')); outvalue = 1/(1-betta)*oo2.mean(strmatch('UTIL',var_list_,'exact')) - oo1.mean(strmatch('V_CE',var_list_,'exact')); ``` But unfortunately I get the following error: ```auto Dot indexing is not supported for variables of this type. Error in stoch_simul (line 21) if isequal(options_.order,0) Error in get_consumption_equivalent_unconditional_welfare (line 11) [info1,oo1] = stoch_simul(base_m, base_options, base_oo, var_list_); %get decision rules and moments Error in csolve (line 60) f0=feval(FUN,x); ``` My initial guess was that stoch\_simul cannot treat base\_options as a structure when it is declared as a global object. But then I had a look back at the reference code and saw that options\_ was also declared as a global object: > Any assistance or suggestions would be appreciated. ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [21 November 2023 23:14 UTC](https://forum.dynare.org/t/consumption-equivalence-across-different-models/24569/2 "2023-11-21T23:14:12Z")
Can you please provide the full set of files that generate the error. ---
**Author:** ![dh.murakami](https://forum.dynare.org/letter_avatar_proxy/v4/letter/d/58956e/32.png) [@dh.murakami](https://forum.dynare.org/u/dh.murakami)\ **Post date:** [22 November 2023 13:11 UTC](https://forum.dynare.org/t/consumption-equivalence-across-different-models/24569/3 "2023-11-22T13:11:56Z")
Thanks Johannes. I’ve DM’d the necessary files. (will share results here once complete) ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [23 November 2023 12:37 UTC](https://forum.dynare.org/t/consumption-equivalence-across-different-models/24569/4 "2023-11-23T12:37:31Z")
The problem comes from the use of global variables in your code. I amended the original example code to eliminate the globals. ---
**Author:** ![pbousquet](https://forum.dynare.org/letter_avatar_proxy/v4/letter/p/ba8739/32.png) [@pbousquet](https://forum.dynare.org/u/pbousquet)\ **Post date:** [4 July 2025 13:42 UTC](https://forum.dynare.org/t/consumption-equivalence-across-different-models/24569/5 "2025-07-04T13:42:54Z")
@jpfeifer I’m getting the same error when I try stoch\_simul after running Thomas Winberry’s toolbox (both the HA model hosted on your GitHub and the KhanThomas model which I updated similarly). I’m guessing it’s a similar issue since globals are used – do you know what updates would be needed to make this possible? Thanks ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [5 July 2025 14:14 UTC](https://forum.dynare.org/t/consumption-equivalence-across-different-models/24569/6 "2025-07-05T14:14:13Z")
Without seeing the files it is impossible to tell. ---
**Author:** ![pbousquet](https://forum.dynare.org/letter_avatar_proxy/v4/letter/p/ba8739/32.png) [@pbousquet](https://forum.dynare.org/u/pbousquet)\ **Post date:** [5 July 2025 14:27 UTC](https://forum.dynare.org/t/consumption-equivalence-across-different-models/24569/7 "2025-07-05T14:27:52Z")
So for example if I run `dynamics.m` from your [github repo](https://github.com/JohannesPfeifer/winberryAlgorithmCodes) and then try to run something else afterwards like `stoch_simul(periods=1000)`, I get an error as described in the OP (dot indexing not supported..). ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [5 July 2025 21:11 UTC](https://forum.dynare.org/t/consumption-equivalence-across-different-models/24569/8 "2025-07-05T21:11:21Z")
Where exactly did you put which command? ```auto stoch_simul(periods=1000) ``` is not a valid Matlab command. It only works within a `mod`-file. Otherwise, you need to call the Matlab function `stoch_simul` withs its correct syntax. ---
**Author:** ![pbousquet](https://forum.dynare.org/letter_avatar_proxy/v4/letter/p/ba8739/32.png) [@pbousquet](https://forum.dynare.org/u/pbousquet)\ **Post date:** [6 July 2025 01:20 UTC](https://forum.dynare.org/t/consumption-equivalence-across-different-models/24569/9 "2025-07-06T01:20:58Z")
Thanks, I misremembered being able to. For anyone else who happens to stumble upon this thread from searching the error – the correct post-estimation call is `stoch_simul(M_, options_, oo_, var_list_)` ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [6 July 2025 08:20 UTC](https://forum.dynare.org/t/consumption-equivalence-across-different-models/24569/10 "2025-07-06T08:20:49Z")
No, in Dynare 6 the correct call is: ```auto [info, oo_, options_, M_] = stoch_simul(M_, options_, oo_, var_list) ``` Otherwise, you won’t retrieve the output.