4.4 Parameter initialization

When using Dynare for computing simulations, it is necessary to calibrate the parameters of the model. This is done through parameter initialization.

The syntax is the following:

PARAMETER_NAME = EXPRESSION;

Here is an example of calibration:

parameters alpha, bet;

beta = 0.99;
alpha = 0.36;
A = 1-alpha*beta;

Internally, the parameter values are stored in M_.params:

MATLAB/Octave variable: M_.params

Contains the values of model parameters. The parameters are in the order that was used in the parameters command.