I have a confusion with the functionality of the dynare_sensitive command. I am trying to find the mean square error. I have found that the command dynare_sensitive works to find the rmse but I do not understand very well:
To use this command, is it necessary to make Bayesian estimates of the parameters of the model?
Does this command go before or after stoch_simul or where in the model does it go?
Can I find the errors of the variables with another command?
I am evaluating different policy rules. Graph how each variable behaves before the shocks with each rule, it turns out that the graphs are very close visually, the difference is not seen. I needed to choose the best rule and I thought about using the mean square error as an indicator, something aspiring to measure the area under the curve. So I want to get the mean square error of each variable, I don’t know if this approach is wrong?
I hope to be clear