Optimal discretionary policy in Smets, Warne and Wouters (2014)

EA_SWW14_forum.mod (8.9 KB)
steadystate.m (828 Bytes)

Dear Professor Pfeifer,

I am trying to perform optimal discretionary policy within the Smets, Warne and Wouters (2014) model (which itself is very similar to Gali, Smets and Wouters (2012)).

I have taken the mod file from the Macroeconomic Model Database (MMB) and added: (i) a steady_state_model block (which is all zeros), and (ii) the requisite optimal policy commands.

However, I am running into errors when running the optimal discretionary policy command, in particular. For example, this error: “Output argument “params” (and possibly others) not assigned a value in the execution with “discretionary_policy_1” function.”

I have attached my mod file and steadystate file.

I would very much appreciate any assistance.

Many thanks
AP