Time varying parameters

Dynare help (legacy posts)
1

Hi everybody,

Does anyone know how to do with time varying parameters when estimating in Dynare (using the estimating command)? I’m specifically thinking about varying parameters in the policy rule due to shifts from fixed to flexible exchange rates.

Thank you

Andreas

2

Dear Andreas, This not possible with the current version of Dynare. We plan to implement estimation with unexpected breaks on the deep parameters in Dynare version 4.3, (which should be released next summer).

Best,
Stéphane.