Hi Professor Pfeifer,
Thank you for the reply. I want to perform Monte Carlo simulations in the constrained and unconstrained models to make welfare comparisons. I checked that welfare is indeed lower in the constrained economy if I compute it using the IRFs to an MIT shock produced by the built-in OccBin package in Dynare. But I wanted to simulate an “actual” economy by drawing random shocks using Monte Carlo simulations, as we can do with the stoch_simul command.
Basically, I’m following the outline laid out in this thread, as I’m facing a similar issue:
Stochastic simulations with OccBin - Occbin - Dynare Forum.
At first, I was using the OccBin built-in package in Dynare, but I realized that stochastic simulations are performed for the unconstrained model only.
Best,