Covariance of exogenous shocks

Dynare help (legacy posts)
5

Thank you for your help :slight_smile:

  1. our preferences are crra.
    the covariance matrix of the shocks that we get is shown in the pdf file attached below.
    we think is just a strange result.

  2. for the policy function: we have an assigment that ask us: “compute policy and transition functions on your own and check that they are the same as what dynare produces”.
    we used the code:

PPSI = (oo_.dr.ys)';(oo_.dr.ghx)';(oo_.dr.ghu)'];

and we got a matrix of coefficients identical to the policy function output produce by dynare but we cannot provide an explanation.
Schermata 2016-12-09 alle 14.56.15.pdf (14.9 KB)