how to specify periods in solving ramsey_policy

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how to specify periods in solving ramsey_policy

Postby anitazhang » Fri Jul 17, 2015 12:24 pm

Hi,
I am learning to use ramsey_policy command. I note that the resulting irfs has 40 periods by default. However, I want to look at longer periods. So I add "periods=100" as an option
Code: Select all
ramsey_policy(planner_discount=0.95,instruments=(r), periods=100);

however, dynare reports error:
Code: Select all
STOCH_SIMUL error: The horizon of simulation is shorter than the number of observations to be dropped.
STOCH_SIMUL error: Either increase options_.periods or decrease options_.drop.

I am wondering if there's any way that I can specify the periods when dynare do the ramsey policy optimization. I attached a simple NK model as an example.
Attachments
nk_ramsey1.mod
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anitazhang
 
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Re: how to specify periods in solving ramsey_policy

Postby jpfeifer » Fri Jul 17, 2015 12:56 pm

The option you are looking for is
Code: Select all
irf=100

if you want to have 100 periods IRFs. The
Code: Select all
periods

options is for simulations used to compute moments.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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