Hi everyone,

Does any of you know if one can conduct welfare analysis in Dynare? In particular, I am interested in replicating the exercises implemented in page 8 of the attached paper.

Many thanks in advance for your responses.

Lin

housing prices capital inflows.pdf (1.15 MB)

Sure. You just need to define the welfare function within the model and do a second order approximation. There are various posts on this.

Thanks Professor Pfeifer

Dear professor jpfeifer,

I have a quick question, Is it possible to perform a welfare analysis in a linear model?

Thanks in advance!

See

Thank you so much for your answer,

I follow the example of Gali 2015 chapter4.4 for the welfare analysis, but I got the error “Unable to perform assignment because the left and right sides have a different number of elements.”

I really don`t figure out what is the reasoncomplete111.txt (7.8 KB)

When I run your file, the complaint is that the `sigma`

in

```
par.omega_pi= sigma/(((1-alpha*beta)*(1-alpha))/alpha);
```

was not defined.

Thanks a lot professor, now everything goes well!