I am trying to use the OSR command to work out the optimal policy parameters in the Taylor rule.
However I just realised that the results change by changing the initial values of the parameters.
In the model attached for example the starting values are the usual (phipi = 1,5/ phiy = 0.5) and the algorithm picks as optimal values phipi = 26.25/ phiy = 1.62. In any way I change the initial conditions the results change.
Am I missing something?
OSR_welfare.mod (4.0 KB)