Dear, professor jpfeifer.

I am simulating a model on Dynare 4.6.1 using the following code below:

mymodel.mod (27.7 KB)

The code generates IRFs for my given calibration. However I would like to see how the response variable changes (e.g. output) as I vary a given parameter (varphi in the code).

What I do is just only change parameter varphi’s value, run the mod each time, extract all the data of output in IRFs, and put them together in Excel to plot.

I have some problems.

First, is what I do right?

Second, I think as parameter varphi’s value changes, the steady state values of model variables, at least some variables, will also change, is this right? For instance, if the steady state value of output really changes, what’s the meaning to compare the deviations of output from a changed steady state? I think what I want is to compare the different level deviations of output from identical steady state level of output, not a changed steady state value of output as I change parameters value.

I hope you can help me on these problems.

Always appreciate for your helps.

Thank you!