Evaluating the policy function with Dynare++

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Evaluating the policy function with Dynare++

Postby Fabian » Tue Nov 03, 2015 8:28 am

Hello everbody,

i am using Dynare++ to solve a model and want to check for approximation errors. I know there is the build in accuracy check, but i want to do it by hand. Therefore I need to evaulate the policy functions for some sets of state variables. At the moment i am looping over my combinations and use the dynare_simul() function, where i adjust the starting values and set the shocks to zero. I only do 1 period of "simulation" and use the resulting values.

1) Is there a way to avoid looping over all combinations without constructing the policy function by myself?
2) Am I handling the shocks right? For example I use the productivity level z_t as starting value and set the shock to 0, in my understanding this is equivalent to setting z_t-1 as starting value and using a shock different from zero. (E.g. assume an AR Process for productivity.) I will check this by comparing the results, but i'm interested in the theoretical identity.

Thanks a lot,
Fabian
Fabian
 
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