I run a uncertainty shocks model in dynare 5.2,the results is right.
When I set order=4 in dynare++, the values of dyn_irfm_eps_tau_mean are all 0. the values of dyn_irfm_eps_tau_var are all Inf.
I run Born_Pfeifer_2014 in Dynare++ at order=4, the irf values are right.
So what’s wrong with my code?
Without the codes it is impossible to tell. My hunch is explosiveness without pruning.
Thanks for your reply, Prof Pfeifer.
I think your hunch is right.
The explosiveness may be come from the standard deviation of uncertainty shock sigma_sigma_tau,since when I set sigma_sigma_tau=0.48, the dyn_irfm_eps_tau shows values.
For the explosiveness, there is no pruning command in the option of Dynare++ .
So,under the original values, how can I aviod explosiveness?
And I would like to caculate the welfare of uncertainty shocks, Prof Pfeifer.
When I run the mod file in dynare++ at order=4,
Does the welfare obtained through this command dyn_mean(dyn_totutility) make sense?
Is there a reason you are using Dynare++ instead of Dynare 5.5?
I send the mod file to you by PM. I would like to calculate the welfare, but the value is infinity, so I would like to use Dynare++ instead of Dynare 5.5.
Dynare++ should yield exactly the same results as Dynare. Both do not yet support pruning at order>3.
