Optimized coefficients in DSGE models

Hi all,

I am calibrating a farily standard DSGE model for optimal monetary policyc analysis. I was wondering whether there is an example where the model is simulated in such a way so that to find the optimized coefficients in the Taylor rule. That is, the policy coefficients that minimize the social welfare function.

Thank you in advance.


the dynare instruction “OSR” (for optimal simple rule) allows you to find the optimal weights of a simple rule but for now you can only use an ad hoc objective function as \Pi_t^2 + Y^2 instead of a microfounded one (social welfare).

Hope this helps

Of course it does.
Thank you very much indeed.