Thank you in advance. Please find at minimal worked example attached.
RunModel.m runs the model CP.mod with different combinations of the instrument chi2_CD and chi2_PD which are taxes on loans for a core and periphery country. Parameters are set using the Set_Parameters.m file into a Params.mat file.
Its set as a loop over the 3 methods to get the variances I have tried:
- Looping inefficiently over DYNARE
- Looping over stoch_simul
- Looping over simult
It creates and saves figures of the variances of consumption, employment and the instrument. You’ll see that all 3 produce different variances. The inefficient loop produces smooth results, the other two are very bumpy.
One thing I tried is using theoretical variances and empirical variances (using periods =1000). The former fails to produce anything for consumption and employment (due to N/A errors) so I can’t use it.
If you could help me at all, that would be fantastic, and much appreciated.
Minimal Worked Example.zip (1.8 MB)