Policy Function

Please, somebody helps me.


I am an absolutly new and beginner in Dynare.
Perhaps I do not understand very well the Policy Functions.
I copy this numbers to my sheet in Excel, in order to verify what I doing.
When I simulate the following equation:

       x(t+1) = A * x(t) + Constant + U * e(t)

I guess that x --> steady state values. But my x (in Excel) do not convergs to this its Dynare’s steady states.
What’s wrong?.

I tested with example2.mod which is very simple model, and didn’t works like I think it would be do.


See page 31 of the manual to see how the policy function is defined.

I self realize my mistake.
My functions now converges correctly to its steady states.

Thank you very much, any way.