Policy & Transition Function

[stepan-a]

If you cannot sort this out with the information provided in the reference manual here:

http://www.dynare.org/manual/Stochastic-solution-and-simulation.html#Typology-and-ordering-of-variables

you really should use the simult_ routine, as I aready suggested you here:

Simulation with real data

I am not sure I understand your problem here. Are you trying to simulate the model with the TFP you observe? Is TFP the only shock exogenous variable in the model? I assume that the TFP shock is the only source of randomness in the model: \log A_t = \rho \log A_{t-1} + e_{A,t} If you call the stoch_simul command, Dynare will simulate the model by taking draws for e_{A,t} in a normal distribution. If my understanding of your problem is correct, you want instead to simulate the model with the …

Best,
Stéphane.