Introduction to Dynare (very rough and brief) with a focus on solution and simulation methods

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Description

A quick and rough introduction to Dynare on MATLAB with a focus on solution and simulation methods.

Topics

• What is Dynare?
• Dynare mod files vs MATLAB script files
• Declaring endogenous and exogenous variables
• Difference between Dynare blocks and MATLAB code
• Declaring parameters and providing numerical values for parameters
• Adding model equations
• Save as mod file, not as m file
• Use addpath to add Dynare to MATLAB
• Running dynare on a mod file
• What Dynare’s preprocessor does
• You can have MATLAB code in a mod file
• Compute steady-state numerically
• Steady-state values are not unique, sometimes not all variables can be pinned down
• Compute steady-state in closed-form
• Dynare checks the steady-state
• Stochastic simulations with first order perturbation
• Stochastic simulations with second order perturbation
• Deterministic simulation under perfect foresight
• Adding the zero-lower-bound under perfect foresight
• Extended path simulations
• A typical mod file

References

• Dynare Manual