Plotting Multiple IRFs with parameters variations

Stochastic simulations
1

Hi there, I just borrowed a script on Matlab from a friend to plot multiple IRFs on macroeconomic aggregates with variation on parameters values on a modified RBC model with an externality.

Basically, there are 4 sets of graphs:

A- Variations on parameter (A): (1.3, 1.5, 2.0, 2.5 and 3.0)

1- TFP shock

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image2717×1748 155 KB

2- Price shock

image
image2798×1752 288 KB

B- Variations on parameter (gama): (0.04, 0.05, 0.06, 0.07, 0.08)

1- TFP shock

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image2884×1737 186 KB

2- Price shock

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image2741×1783 314 KB

Files related:

1- Matlab Loop to plot IRFs
rbc_loop_x_withrobustness_FK.m (9.6 KB)

2- Dynare Files:

RBC Model no tax:
rbc_comp_e_notaxVF_NEW.mod (5.5 KB)

RBC model with tax:
rbc_comp_e_withtaxVF_NEW.mod (5.6 KB)

Robustness check parameter (A):
rbc_comp_e_withtaxVF_NEW_Arob.mod (5.7 KB)

Robusteness check parameter(gama):
rbc_comp_e_withtaxVF_NEW_gamarob.mod (5.7 KB)

On both cases, the graphs for the TFP shock does not show variations of the parameters (A) and (Gama), but for the Price shock it seems to work fine.

I would welcome any suggestions to make it work, it seems that TFP shock does produce variations for the chosen range of parameters (A) and (gama), perhaps the values for the macroeconomic aggregates are two small, not sure.

if you want try, start running the matlab file (from line 98 on), divided in blocks for robustness check of parameter (A): TFP and Price shocks and then, robustness check of parameter (gama): TFP and Price shocks.

Thank in advance for any comments or suggestions.

Kind Regards,
Felipe

2

It seems like one of the older issues you had. Changing par_A moves Tau but leaves the rest of the model unaffected.

3

Dear Prof. Pfeifer,

Happy new year! Thank you for your insight, I will revisit the model based on your input.

My initial reaction was that TFP graphs were not plotted because the changes in par_A and Gama (in the proposed range) didn’t promote significant changes in the macroeconomic aggregates under TFP shock.

However, using the same code withtax_NEW_Arob and NEW_gamarob when we change par_A and gama there are changes on the macroeconomic aggregates under the Price shock.

Kind Regards,
Felipe