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Policy Function

PostPosted: Thu Oct 14, 2010 11:14 pm
by Renato
Please, somebody helps me.

Hello.

I am an absolutly new and beginner in Dynare.
Perhaps I do not understand very well the Policy Functions.
I copy this numbers to my sheet in Excel, in order to verify what I doing.
When I simulate the following equation:

x(t+1) = A * x(t) + Constant + U * e(t)

I guess that x --> steady state values. But my x (in Excel) do not convergs to this its Dynare's steady states.
What's wrong?.

I tested with example2.mod which is very simple model, and didn't works like I think it would be do.

Thank's.

Re: Policy Function

PostPosted: Sat Oct 16, 2010 7:00 am
by jpfeifer
See page 31 of the manual to see how the policy function is defined.

Re: Policy Function

PostPosted: Mon Oct 18, 2010 3:58 pm
by Renato
Thanks.
I self realize my mistake.
My functions now converges correctly to its steady states.

Thank you very much, any way.