Hello all,
I am working with a deterministic model with an unexpected temporary shock. However, I am having a problem getting dynare to show me simulation results. Dynare finds the equilibrium, verifies the rank conditions, and runs the simulations, but the simulations just return flat lines of the steady-state values. I get not error messages at all suggesting anything went wrong. For other parameter values of rho_scale (at the very top of the file), there is no problem at all. For example, rho_scale=1 or .8 works just fine, but for lower values say rho_scale .7 it does not. Also, I know for sure that the equilibrium exists for rho_scale at .7 and for lower values. Any help would be greatly appreciated! Attached is the code for reference.
Ben
rho.mod (9.8 KB)
Hi,
I have the impression that you are not using the latest stable version. When I run your file with rho_scale=.7, Dynare clearly fails to find a solution (there is a message in the matlab command window). I do not know why the simulation is so sensible to the values of rhoG, rhoGE and rhoB since I do not know the model… But if I try with another it seems to work. For instance add the block and ‘bytecode’ options to the model block, ie replace:
model;
by
model(block, bytecode);
except that there is clearly something wrong at the end of the simulation (a huge bump which probably reveals an issue with your terminal condition).
Best,
Stéphane.
Hey Stéphane,
Yes, I think I may have to update dynare. But I want to make sure I understand what you are saying. When you add:
model(block, bytecode);
Do the simulations work for .7 except for the terminal condition?
Ben
Hi Ben, Yes except for the weird terminal condition (which is not necessarily an issue since the model has reached the steady state long before) it works with option block (bytecode is just improving speed I think, I do not remember) and .7.
Best,
Stéphane.
Thanks Stéphane, I really appreciate your help!