I have been trying to calculate the osr for mi DSGE model for the first time. The parameter I would like to evaluate which is it´s optimal value is called “T”, and in the parameter section of my code I have given it a value “T=0.1;”.
When I run my code I get the following statement
OPTIMAL SIMPLE RULE
OSR: Initial value of the objective function: 0
f at the beginning of new iteration, 0.0000000000
Norm of dx 0
Improvement on iteration 1 = 0.000000000
improvement < crit termination
OPTIMAL VALUE OF THE PARAMETERS:
Objective function : 0
When I change the value of T at the parameter section of my code, the Optimal Value is always the one I set as parameter. Any clue why this happens?
Thanks in advance