Using extended path to simulate time series in DynareOBC

Stochastic simulations
1

Hi! I used the extended path command to simulate time series with my model. This worked fine. When I did the same with DynareOBC to include the ZLB, instead of getting time series, I got IRFs. Is DynareOBC able to simulate time series?

Best,
Daniel

2

(@cfp )

3

You don’t use the extended path command with DynareOBC. Just stoch_simul as normal. If you request a stochastic simulation there, DynareOBC will provide it.

4

@cfp Thanks for the quick response! When I plot the stochastic simulation in Dynare (without the ZLB) it works fine. When I plot the stochastic simulation in DynareOBC I get an error related to the plot, but the IRFs are still shown. I have tried the normal plotting function (figure, plot …) and the rplot function. (Just to be clear: I would like a simulation where each period random shocks are drawn.)

I have attached the mod file just in case. (It’s just a simple model to experiment with the ZLB.)

nk3z.mod (869 Bytes)

5

The issue was that you didn’t have semicolons at the end of the lines of MATLAB code at the end of your MOD file. DynareOBC’s support for MATLAB code within a MOD file is very much a secondary add on feature. If you want to write MATLAB code without semicolons, don’t put it in your MOD file, just run it directly after the dynareOBC call has completed. (But with the semicolons put in, it runs fine.)

6

Thank you, that worked!