Logical problem about optimal monetary policy

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Logical problem about optimal monetary policy

Postby jonathanb » Mon Apr 11, 2016 3:55 pm

Hi,
I have maybe a logical problem: there is a difference between an estimated model/rule and the optimal one.
But the optimal policy procedures described in optimal rule (osr), commitment (ramsey_policy), and discretionary (discretionary_policy) are based on calibrated parameters, not estimated (and even if they are estimated, it is by using a model with a monetary policy rule in order to close the model....)

I ask this question because my calibrated parameters are strongly different compared to my estimated parameters.

I can also load previously estimated parameters as in viewtopic.php?f=1&t=6301
and then running optimal policy features, but I can only run osr.

Finally, the main question is: how can I estimate a model based on the assumption that the central bank is under optimal policy (commitment or discretionary) ?
I wrote estimate, not simulate.
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Re: Logical problem about optimal monetary policy

Postby jpfeifer » Tue Apr 19, 2016 7:15 am

In principle, this is possible, but we do not yet support it. But we plan to implement this in the future, see https://github.com/DynareTeam/dynare/issues/1173
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Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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