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dynare_prac's Introduction

Dynare Practice

This repo contains some files from practice dynare questions.

This largely follows https://m.tau.ac.il/~zvih/topics/Sargentetal07.pdf

The overall work flow goes like this:

  1. Write down all the endogenous variables, exogenous variables, parameters and equilibrium defining equations
  2. Make a .m file which defines a function on returning the equations to solve for to get steady state values of our variables
  3. Make a .m file which is a script which:
    • Loads the parameter values and saves them in a .mat file
    • Calls the fsolve function to solve the functions defined in the steady state equations defined above
    • Saves steady state values in a .mat file
  4. Make the .mod file. Load in the parameter and steady state values from respective .mat files.
  5. ???
  6. Profit

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