Loop over parameters to find maximized welfare

Optimal Policy
3

Thank you for your quick reply!!! It’s real helpful!!

But I still have some questions:

  1. done

  2. I am not sure whether my shock size is correct… I just follow the .mod file from
    Matteo Iacoviello, 2015. " Financial Business Cycles ," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(1), pages 140-164, January.
    And my model structure is basically modified from it. But I don’t know what’s the effect of different scale of shock size. Should I choose my shock size based on the parameter values? If not, how should I choose my shock size?
    I change the shock size to an ordinary case as below:

     shocks;
 var eps_me; stderr sigma_ME ;
 var eps_z; stderr sigma_Z ;
 var eps_R; stderr exp(sigma_R);
 end;

    It’s it okay?

  3. There is still an error after I change the shock size. And the error is the same as before. I know that my model violate Blanchard & Kahn conditions when rho=1.0. My question is that, since the .m file still run without just stopping, does my model structure need an overall modification? or could I think my model works well but the parameter looping range should be modified?

  4. In the previous forum topics, there is a code to show where the error happens.

     if info;
     disp('Computation fails for rho = ' num2str(rho)]);
 end;

    But these code doesn’t work. Once I run a .m file included the above code, it will show an error message: “Unexpected MATLAB expression.”. Is there something wrong?

Sorry for all these questions, and thank you very much for your time.