Covariance of exogenous shocks

Dynare help (legacy posts)
4
  1. What do you mean with

[quote]compute the policy funcion by hand?
[/quote]

  1. The displayed correlations are for the exogenous variables, i.e.

But you introduced the correlation manually via a VAR structure for your shocks. That correlation therefore affects endogenous variables, i.e.

That’s why the display is correct.
3. I can’t help but notice that you are using Epstein-Zin preferences. That will not work at first order and their implementation in Dynare is not correct. See github.com/JohannesPfeifer/DSGE_mod/blob/master/Caldara_et_al_2012/Caldara_et_al_2012.mod for an example.