Impulse responses don't display when solving to second order

[davidamdur]

Just a note that that I found these closely related threads:

Error in output results - what does it mean?

I am trying to estimate a DSGE model with monopolistic competition and price rigidity according to Rotemberg (1983). The model, in levels, takes Peter Ireland’s framework. I have attached the mod.file I’m getting the follow output “error”. What does it mean? There is no impulse response functions neither. Can someone have a look and tell me where the problem might be? Merci/Thanks, pycs Irelandmoney4.mod (1.71 KB)

2nd order decision rule

Hi, I am solving a relatively big DSGE model using Dynare version 4.0.3: MODEL SUMMARY Number of variables: 260 Number of stochastic shocks: 1 Number of state variables: 86 Number of jumpers: 26 Number of static variables: 154 I did not have problems with the 1st order approximation, when all the irf`s were plotted correctly. Only changing to “order=2”, to run the 2nd approximation, the log file did not report errors, but all the irf 's values are NaN. Since Dynare…

Pruning in Dynare++

I’m getting explosive IRFs for a second-order approximation to a model in dynare++, which is chracteristic of 3rd and 4th order terms getting introduced from multiplication of 1st and 2nd order ones. Of course, the problem could be with my model somewhere, but it’d be nice to rule out the possibility of higher order terms creeping in. So does anyone know if dynare++ already has a pruning algorithm in it, or if there’s any other diagnostic I could use to see if this is the source of the problem…

and especially (for Dynare 3.0.65):

Pruning algorithm for second order approximation

Dear all, due to the ongoing difficulties with explosive simulations with second order approximations, I introduced the option for the pruning algorithm in Dynare 3.065 described in Kim, Kim, Schaumburg and Sims (2005): “Calculating and using second order accurate solutions of discrete time dynamic equilibrium models” In order to use it correctly under Windows, please proceed as follows: Download the simult_pruning.m file in the attachment to the Dynare directory, generally under …\dynare_v3…

Sounds like an implementation of Chris Sim’s pruning algorithm for version 4 would be a crowd pleaser.