Hi Dynare Community,
I have just estimated a model. All the convergence statistics look very good. Right after my
estimation command, I have a
stoch_simul command. So when the
.mod file runs, my understanding is that the
stoch_simul uses the posterior means of the estimated parameters from the estimation to generate the IRFs etc. I assume it also uses this set of parameter values to produce the variance decomposition.
My issue is this: the variance decomposition that is produced immediately after
stoch_simul looks very different from the variance decomposition that is produced when I run
stoch_simul after manually loading the estimated parameter values. Specifically, I use the same
.inc file with same model equations, but right after the shocks block, I use:
x=load('Baseline_Estimation_results.mat'); M_.params=x.M_.params; steady; stoch_simul(hp_filter=1600, order=1, irf=25, relative_irf) Pie Y inv L C W;
The variance decomposition that is now produced is wildly different. The IRFs look identical to the IRFs after
stoch_simul, so the correct parameter values are being loaded. What am I missing?
Thanks in advance for your time!