I waited for the new version of Dynare in order to compute the optimal policy under discretion of my model.
As far as the case under commitment is concerned, I used the command “ramsey_policy”. Everything ran smoothly
and I was able to obtain the results of the paper I am replicating.
Sadly, if I replace the “ramsey_policy” command by the “discretionary_policy” one, Matlab reports several errors.
For instance “??? Reference to non-existent field ‘instruments’”. Another user reported the same problem with version
4.2.0 in the context of the “ramsey_policy” command at Ramsey policy in dynare 4 : Is it a bug?.
What I don’t get is why in the case of commitment I don’t need to specify instrument variables for the “ramsey_policy”
command but in the case of “discretion_policy” I have to in order to avoid this error.
Including the “steady_state_model” block (as suggested by other users) doesn’t seem to help. Matlab reports that several
matrices are singular, etc.
In the attachment you can find the mod.file for optimal policy under commitment which was computed with the “ramsey_
policy” command. Would be nice if you could give me a piece of advice on how to compute the optimal policy under
discretion with the new command “discretionary_policy” in Dynare version 4.3.0.
Thank you very much in advance,
ramsey_policy.mod (993 Bytes)