Optimal Simple Rule problem

[undergradEcon]

Dear experts,

I have the following question regarding command osr in dynare.
1. I am curious whether dynare can be used with the model with no forward looking variables? I mean, only backward looking and present period, cos I get an error saying
Error using osr1 (line 38)
Backward or static model: no point in using OSR

2. Where does osr store optimal parameter that it gets from the computation?

Thank you very much for all suggestions in advance!!

[jpfeifer]

1. The whole point of using policy rules is the commitment versus discretion problem introduced by forward-looking agents. If everything is backward-looking, what is the point of a rule? If you still want to use the osr-command, you can try to fool Dynare by using a dummy equation like

Code: Select all

junk=0.9*junk(+1);

2. In the most recent version (4.4.2) in oo_.osr