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7 votes
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DSGE models (Dynare) are only based on simulations and approximations? (without data)

Short answer It doesn't seem like you've tried very hard to find estimation using Dynare (google results of "Dynare estimation"). Dynare is in fact capable of doing estimation and typically people ...
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  • 1,553
5 votes

Can Dynare solve general equilibrium (GE) models with non-convex adjustment costs?

Short answer: no. Dynare, and linearization/perturbation methods in general, are designed for solving smooth models approximated around a single point in state space (the steady state). A model ...
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  • 1,036
3 votes

What resources are available for learning Dynare?

Eric Sims at Notre Dame has an excellent set of self contained notes. He uses a small neoclassical model as an example and goes over the model derivation, how to construct each block of Dynare code, ...
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  • 131
3 votes

Can Dynare solve general equilibrium (GE) models with non-convex adjustment costs?

It is generally not possible to make a sharp statement about the types of non-convex costs that Dynare can handle. Many different factors come into play about whether a model can be "solved" by ...
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  • 714
2 votes

How can I calculate with the average of the consumption in an RBC framework?

Consider the risk free steady state. In that situation the Euler equation becomes: $$ \left(\frac{C_{t+1}-b \overline{C_{t}}}{C_t-b \overline{C_{t-1}}}\right)^{-\sigma}=\frac{1}{\beta \cdot (1+r)}$$ ...
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2 votes
Accepted

Evaluation around steady state for a specific DSGE Model

I found the error in my derivation: I mistakenly supposet that the steady state of $p_t+1$ equals $\bar{\rho}$. I did not recognize that p was different from $\rho$ because of the poor quality of my ...
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1 vote

Solving rational expectations model - Sims form

If you are planning on using Dynare, you do not need to "solve" the model using Sim's method. Dynare takes care of the solution algorithm for you. If you want to get to IRFs quickly, I suggest ...
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1 vote

Solving rational expectations model - Sims form

I think I have managed to solve it. However, not the way I was initially hoping. I simplified the stacked matrices using the given conditions and some assumptions. Here is my solution: Eq. (3) I ...
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  • 641
1 vote

What resources are available for learning Dynare?

Here is a collection of 38 models implemented in Dynare. As the page states: It includes small, medium- and large-scale models of the United States, the Euro Area, Canada, and several small , ...
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  • 8,437

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