Use normcdf in Dynare/ Normal Dist Integrals

Stochastic simulations
1

Hello,

I have a full set of equations + SS. Two of the equations (image attached) accumulate from abar (variable determined endogenously in the model). Should I use an external function or normcdf is used within Dynare? I couldn’t find an example for these type of integrals in Dynare.

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a_i is a log-normal with zero mean and a determined variance that I calibrated.

Thank you,

2

You should be able to use normcdf in Dynare. See the manual.

3

Christiano, Motto, and Rostagno (2014) use the normcdf function. Have a look at their replication code/paper: Risk Shocks - American Economic Association