# Policy frontier issues: differences in the volatility of the target variable generated by different policy rules

**URL:** <https://forum.dynare.org/t/policy-frontier-issues-differences-in-the-volatility-of-the-target-variable-generated-by-different-policy-rules/28339>\
**Category:** Optimal Policy\
**Created:** [14 April 2026 15:41 UTC](https://forum.dynare.org/t/policy-frontier-issues-differences-in-the-volatility-of-the-target-variable-generated-by-different-policy-rules/28339 "2026-04-14T15:41:08Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![rookie1996](https://forum.dynare.org/letter_avatar_proxy/v4/letter/r/439d5e/32.png) [@rookie1996](https://forum.dynare.org/u/rookie1996)\
**Post date:** [14 April 2026 15:41 UTC](https://forum.dynare.org/t/policy-frontier-issues-differences-in-the-volatility-of-the-target-variable-generated-by-different-policy-rules/28339/1 "2026-04-14T15:41:08Z")

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![image](https://forum.dynare.org/uploads/default/original/3X/7/0/70fafc0e81aa557aa273ae65ce8f18708f0e3281.png)Hi everyone, I recently ran into a problem while trying out the policy efficient frontier (pictured). Different policy rules generate huge differences in the volatility of the target variable, making it seem impossible to compare policies. I would like to ask:  
(1) Is this normal?  
(2) How to adjust the method to change this state?  
My loss function is set as min{omega\*var(x1)+(1-omega)\*var(x2)}, x1,x2∈[Y, B, E]

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [16 April 2026 21:05 UTC](https://forum.dynare.org/t/policy-frontier-issues-differences-in-the-volatility-of-the-target-variable-generated-by-different-policy-rules/28339/2 "2026-04-16T21:05:32Z")

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Where can I see the problem in the figures?