Hi,
As far as I understand, after estimation, dr_.ghx and dr_.ghu in Dynare 3.065 are the policy functions of the model calculated by using the posterior mean values of the parameters.
Does anyone has an example on how to calculate new policy functions ghx and ghu for another set of parameters?
I’ve been exploring the dr1 and resol functions (.m files) but I can’t get a different set of policy functions.
Thanxs
hi
i think ghx and ghu are just matrices pertaining to the solved reduced form of the linearised model, whether calibrated or estimated.
the order of ghx is # of endogenous variables times # of predetermined variables. the order of ghu is # of endo variables times # of exo shocks.
these matrices are updated after estimation. but if you do a stoch_simul (after commenting out the estimation command), you can get policy functions from the ghx matrix for any set of calibrated values.
look at the dynare manual to see the re-ordering of the variables in the state-space form so that you can proper policy functions.
cheers
Reuben