Variance decomp

hello Group,
i wish to do a variance decomposition for my estimated model.
so is the best idea the following…

  1. load the posterior mode file using the estimation command
  2. do stoch_simul right after the estimation command.
    ( so that dynare, does the stoch simul , with the parameter values set at the posterior modes)

please comment , whether my recipe makes any sense!!


You will indeed get the variance decomposition at posterior mode.

If you do it after Metropolis, you will get the variance decomposition at the posterior mean.

We are currently working on providing the posterior distribution of the variance decomposition (it is available in version 3, with the estimation option ‘moments’)