Optimal Policy using OSR

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Optimal Policy using OSR

Postby camara_cmb » Sat Aug 29, 2015 10:43 pm

Hi

I have been trying to calculate the osr for mi DSGE model for the first time. The parameter I would like to evaluate which is it´s optimal value is called "T", and in the parameter section of my code I have given it a value "T=0.1;".

When I run my code I get the following statement

OPTIMAL SIMPLE RULE


OSR: Initial value of the objective function: 0

-----------------
-----------------
f at the beginning of new iteration, 0.0000000000
Norm of dx 0
----
Improvement on iteration 1 = 0.000000000
improvement < crit termination
zero gradient

OPTIMAL VALUE OF THE PARAMETERS:

T 0.1

Objective function : 0


When I change the value of T at the parameter section of my code, the Optimal Value is always the one I set as parameter. Any clue why this happens?
Thanks in advance
camara_cmb
 
Posts: 19
Joined: Thu Jul 17, 2014 3:44 pm

Re: Optimal Policy using OSR

Postby jpfeifer » Sun Aug 30, 2015 7:10 am

For some reason your objective function is flat in the parameter T. Maybe it's not identified or you did a mistake when coding it. Check where T enters the model.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany

Re: Optimal Policy using OSR

Postby camara_cmb » Wed Sep 02, 2015 3:33 am

Thanks for your reply!
Is there an example code for optimal policy other than the one in the user guide or manual?
I have tried the command for different parameters other than T, those that influence the procyclicality of government expenditure for example, and I always get the same result.
Thanks in advance for any comment
camara_cmb
 
Posts: 19
Joined: Thu Jul 17, 2014 3:44 pm

Re: Optimal Policy using OSR

Postby jpfeifer » Wed Sep 02, 2015 6:09 am

Please provide me with the file.
Some OSR examples are at https://github.com/DynareTeam/dynare/tree/master/tests/optimal_policy
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany

Re: Optimal Policy using OSR

Postby camara_cmb » Sat Sep 05, 2015 5:45 pm

Thanks!
I could calculate the optimal value of the parameters in my model thanks to your examples!
I have one extra question, if you have the time, can I fix an upper or lower bound over the value the parameters?
camara_cmb
 
Posts: 19
Joined: Thu Jul 17, 2014 3:44 pm

Re: Optimal Policy using OSR

Postby jpfeifer » Sat Sep 05, 2015 6:05 pm

------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany


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