Simulated data from model

Dynare help (legacy posts)
1

Hi,
I am trying to simulate data (endogenous variables) from my DSGE model i implemented by using Dynare. It’s clear that Dynare is able to provide impulse response of one variable following a given shock.
But, my question is the following: Is Dynare able to hit the model by several shocks simultanousely ( not separately ) , and then get impulse responses of endogenous variables?

Thanks a lot for help!!

Manadir

2

For simulations, use the periods-option of stoch_simul.

3

Thanks…I will try this option.

4

Hi again,
I have tried your last advice to get simulated data from model, but Dynare gives me the following warning message: " Matrix is close to singular or badly scaled. Results may be inaccurate…"
What should i do in this case?
Thank you for help!!

5

Please provide the mod-file

6

Here are two files attached. MSF.mod is simulation file.

I remember you that i try to hit my economy model by several shocks simultanously and at every time for a fixed period, then get artificial data ( for endogenous variables).

Thanks a lot for your help.
MSF_steadystate.m (3.35 KB)
MSF.mod (10.3 KB)

7

Dynare 4.4.3 is unable to solve your model. Please try the unstable version. With that version, your file runs.

8

[quote=“abman10”]Here are two files attached. MSF.mod is simulation file.

I remember you that i try to hit my economy model by several shocks simultanously and at every time for a fixed period, then get artificial data ( for endogenous variables).

Thanks a lot for your help.[/quote]

I’ve found this often happens due to mis-specification. Recheck your equations and make sure you can solve your steady state with another solver. Sometimes big shocks, or too many shocks, cause problems in nonlinear systems.

9

Your suggestions are really appreciated.