Using the dynare outcome

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Using the dynare outcome

Postby bigbigben » Thu Jul 24, 2008 12:23 am

Hi, Guys:
I want to use something spit out by Dynare, but something confuses me. I am using Verson 4 now.

1. I try to use the ghu and ghx matrices to compute the finite horizon variance decomposition, but the order of variables is weird.

The order I input in the mod file is the following
c_t lam_t h_t k_t z_t y_t gam_t a_t x_t r_t w_t rk_t

The Alphabetic order of the variables in my mind should be:
a_t c_t gam_t h_t lam_t k_t r_t rk_t w_t x_t y_t z_t

Interestingly, the order in ghx is the following:
lam_t h_t r_t w_t rk_t k_t gam_t a_t x_t c_t z_t y_t

It is neither an alphabetic order nor the way I order them, so why the variables are stacked in such a way ?

2. Following Christiano (2002), the cannonical rational dynamic system can be wrtten as the following:
alpha0*E(Z(t+1)|I(t))+alpha1*Z(t)+alpha2*Z(t-1)+beta0*E(epi(t+1)|I(t))+beta0*epi(t)=0.

Is there some way to back out the alpha matrices and the beta matrices ?

Thanks for your response. I attched my code here. It is the simplest RBC model with two technology shocks on the growth rates.
Attachments
rbcsimplest.mod
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Re: Using the dynare outcome

Postby carbsjiji » Mon Nov 01, 2010 4:28 pm

how do u find the order of matrix in dr_ghx??
it is really confused me?
thx very mcuh if u can help me:)
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Re: Using the dynare outcome

Postby SébastienVillemot » Mon Nov 22, 2010 11:50 am

Please look at the reference manual, in the section about “stoch_simul”. Everything is explained in detail there.

Best,
Sébastien Villemot
Economist at OFCE – Sciences Po
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