Hi, I want to be able to do simulations using third order decision-rules for any specified path of exogenous shocks. I tried using the simult_.m function for the example model (example2.mod in the examples folder under dynare) solved up to a third order. But I obtain an output y_ which is zero everywhere apart from the first column which has the initial values of variables.
This is how I call the simult_ function after running example2.mod for order=3:
I first draw shocks:
E_e=randn(2,2100)'*0.009;
and input this into simult_ alongside the initial values of the variables (steady-state) stored in oo_.dr.ys, and the third-order decision rules stored in oo_.dr :
y_=simult_(oo_.dr.ys, oo_.dr, E_e, 3);
The resulting y_ is a matrix full of zeros. But when I do the same for order 1 or 2, simult_ works perfectly fine. I would appreciate if you could tell me what i'm doing wrong or post an example use of simult_ function with a third-order solution. Many thanks!