Dear Dynare users,
First, let me thank to the developers of Dynare, for a fantastic tool for us economists!
I have a problem. I read the manuals and browsed the forum, but found no solution. Since others might have come across a similar problem, I decided to ask you for an advice.
I would like to simulate a model with a stoch_simul() function. In the model, I have a parameter that changes value. An example might clarify the idea: Suppose you have a small model with a consumer, in which consumers discount factor, beta, changes from 0.97 to 0.99. I would like to simulate consumption time series. I tried to bypass the problem using command “varobs beta” to declare the time changing beta as an observed variable instead as a parameter. I did not work.
Has anybody had a similar problem or can think of a neat solution?
Thank you for your kind help!