I hope you’re able to help me with something. I’ve ‘succesfully’ ran my .mod file in Dynare, and all seems well (or at least I get the right steady state values I was looking for!). However, I only get the steady state values. No other correlations, info, whatsoever that you regularly see. I was wondering why this is? I think it might have something to do with the fact that my model is very limited (having only two equations and two variables).
However, I was looking to graph the output ranging over the periods from -4 to 8, with 0 being the moment that the shock (interest rate i increasing from 0 to 1) occurs. I want to see the gradual increase of pi and initial decline and following increase of x - but I don’t get that output anywhere. Also looking at the oo_ ‘output/thing’ (sorry, don’t know how to call that exactly) there are only two values and those are of the steady state, being x = 0.15 and pi = 1. When I put this into a graph it’s obviously only a 0.15 or a 1, while I want to see the movement of these variables over time.
Your model seems to be perfect foresight, i.e. deterministic. You have the full setup, but did not tell Dynare to compute anything (simul or sequence of perfect_foresight_setup and perfect_foresight_solver). Given that you start in steady state, end there, and have no shocks, not much is going to happen. Note that you can use for example
to plot the variable x after perfect foresight simulations.
My model is indeed deterministic. I’ve tried the rplot command and I got indeed a graph with a depiction of what was happening with my variables. Still only two values (0 and 1 or 0 and .15) in my oo_ output though. I’ve tried using the perfect_foresight_setup command and looked it up in the manual but I get an error. How would one use that command correctly? I did add
simul (periods=200,stack_solve_algo=0);
to my .mod file now, but still no luck. What I’m looking for are more ‘in between’ values. Would this have something to do with the fact that variable i jumps up to 1 from period 0 to 1 and hence all other variables also respond directly, i.e. that there are no real “in between” values since the jumps are that large?
I think I fixed it! I changed the amount of periods from 200 to 3 to see what happend and it indeed showed a lot more detail. What would the perfect_foresight_setup or perfect_foresight solver command do?