Running PMIC in Octave

Stochastic simulations
1

Hi.

I am running the attached Dynare code on Octave on a Mac and the minimal “Poor man’s invertibility condition” (mPMIC) doesn’t seem to be working, in the main.

I kindly ask of somebody to run it for me and report the results on here.

There are two sets of parametrisation (for the EA and the USA), for each of which the parameter \gamma (gamma) is assigned three values (0, 0.5, 1), consequently, the mPMIC is to be run six times in total.

In case matrix D were to be found non-invertible \gamma's parametrisation could be accommodated to the nearest fourth decimal place (0.0001, 0.4999, 0.9999) or the like in an attempt to circumvent the issue.

Available in the event of any doubts. Thank you.

RFC.mod (3.5 KB)

2

What do you mean with “not working”? What is the issue you face. You first need to fix your exogenous process to

a=rho_a*a(-1)+p(-1)+t(-1); // Production technology

to get a well-defined linearization and steady state.

3

I mean that it is not producing any output: I cannot retrieve the A, \; B, \; C and D matrices nor see the result of the minimal check printed on the screen. As far as I recall, back when I had access to Dynare on Matlab, that is the way it ought to function.

I can neither generate more than an IRF graph at once: of those three shocks only the first one in line produces a graph. That doesn’t matter much, though, for I can take it in turns.

Now, there is probably some bug which I can’t seem to fix, though I did try.

warning: X13 binary is not available.
If you are under Debian or Ubuntu, you can install it through your package manager, with ‘apt install x13as’.
If you are under Windows or macOS, this probably means that you did not install the dseries toolbox through an official package.

warning: print: ‘gs’ (Ghostscript) binary is not available. Many formatsmay not be available
error: print: ‘epstool’ is required for specified output format, but binary is not available in PATH
error: called from
print>epstool at line 893 column 7
opengl_print at line 49 column 16
print at line 771 column 16
dyn_saveas at line 42 column 5
stoch_simul at line 320 column 21
driver at line 347 column 27
dynare at line 281 column 5

My only request, in lordly courtesy, is for somebody to run those minimal checks for me and report back the results, of which I am in quite some need. Much appreciated.

As for removing production technology growth from the attendant equation nothing really seems to substantially vary, as far as the IRFs may be concerned; besides, one wishes for it to be there: I have rewritten it out as a parameter.
Thank you.

RFC.mod (3.6 KB)

4

Have you tried fixing the error message by installing epstool as suggested? Alternatively, use the nograph-option or set graph_format=(none) to circumvent the error.

5

I had looked into how to go about with it, but with scarce success. Would you know how to proceed?

In fact, as asked, would you be able to run those minimal checks yourself please and report them back on here? Thanks.

6

Please try
RFC.mod (3.6 KB)

P.S.: I can run a code for you, but I cannot do 6 different modifications before running something.

7

I tried your file and it generated the PMICs. Since the control toolbox failed in the installation, however, as not seldom occurs, I was not able to conduct the minimal checks on Octave, but had to translate the matrices over to Julia, as I had with the IRFs in order to graph them better. Thanks.

8

The removal of the mean from the production technology law of motion seems to square with a proper first order log-linearisation thereof, after all. Mistake acknowledged.