Dear all, I am trying to draw a policy frontier (or Taylor curve) by assuming loss function as “lambda * var(inflation) + (1-lambda) * var(y)”. But I don’t knwo how can I get it? Can anyone offer me an complete example for refering! Any helps will be really appreciated. Best, yanking

You can use a steady state file. See e.g. https://github.com/JohannesPfeifer/DSGE_mod/blob/master/Gali_2015/Gali_2015_chapter_5_discretion.mod where I used the steady_state_model for this purpose.

Dear Sir Thank you for your reply. However, when I am coding these parameters in steady state model (as you did) , the dynare is giving me Waring as %% MODEL_DIAGNOSTICS: The Jacobian of the static model contains Inf or NaN. The problem arises from: Derivative of Equation 15 with respect to Vari…

Thank you very much for your help Sir. I am still in bit of trouble. I am running modified mod file with steady state model block separately and one time within loop by changing the value of f. When run separately at value of f = 0.5, the optimal value is 0.68 and 0.89. But when run within the lo…

Yes, that is strange and you should investigate this.

Hi, Prof Pfeifer, I add your above code to my mod file and I have the following error: PP.mod (11.4 KB) ERROR PP.driver (line 675) var_piH(grid_iter)=oo_.var(piH_pos_var_list_,piH_pos_var_list_); ERROR dynare (line 281) evalin(‘base’,[fname ‘.driver’]); Thanks.

You are trying to read out piH, but you only requested pi as an output: osr(opt_algo=9) ygap pi;

Thanks a lot ! I was careless. I modified the model and it works now.However ,I am confused about a question.In command window , there is: OPTIMAL VALUE OF THE PARAMETERS: phiy 31.7588 phipi 38.978 phiq 8.11791 rho1 0 O…

That depends. You have a loop iterating over parameters at the end. The workspace will contain the results after that loop.

Specifically, I hope to get the following figure and table: [3272b0d857cdd950aa8c1e9ceaa53e5] [bbf2089bbd04233f0e1b2546d37ceb9] After I run the above model file ,I get a figure: [f86d2b26309cf0377dee44dfdce4ccc] I think I get the same figure as above one that I uploaded earlier: [3272b0d8…

Dynare Forum

Policy frontier

Optimal Policy

jpfeifer 13 August 2024 08:41 63

See

Error related to OSR/EPF Optimal Policy

In Dynare 6, you need [info, oo_, options_, M_] = osr.run(M_, options_, oo_, {}, M_.osr.param_names, M_.osr.variable_indices,M_.osr.variable_weights); instead of oo_.osr = osr(M_.endo_names,M_.osr.param_names,M_.osr.variable_indices,M_.osr.variable_weights); CcLTV_EPF03.mod (16.1 KB)

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