I would like to simulate an asymmetric search-and-matching model. While I don’t encounter any problems with stoch_simul, Dynare seems to be unable to solve the perfect foresight model when I try to run a deterministic simulation via simul(). Since simul() does not work I tried the EP method and had more success. However, when I run a simulation using extended_path(), the generated path of GDP only fluctuates during the first 10% of the simulation period, and is implausibly flat thereafter (I attached a screenshot of the simulated GDP series, please find it below). This is a bit suspicious because my exogenous shocks fluctuate during the entire simulation period. Does anyone by chance understand why this would come about? Might it be a big, or is there something that I miss? I get the same result when I simulate over a longer/short time horizon, and use a different calibration.
Kind regards and many thanks!