Dynare forums

Hi

I want to find optimal coefficients of taylor rule by grid search (changing of parameter for finding the best parameter that minimized loss function) in dsge model

can dynare helps about this?
can i apply osr command in dynare for finding coefficeants by grid search?
in osr command we must set parameters with certain values
what is this value?how can find it,s?


Thanks

osr will find the parameters which minimize the objective using a non-linear optimizer (which is more powerful than grid searching).

However you need to give some initial values to the optimizer as a starting point: there grid searching can help, you can use its output as the starting point, if an educated guess is not enough.