8. Examples

Dynare comes with a database of example .mod files, which are designed to show a broad range of Dynare features, and are taken from academic papers for most of them. They are distributed in the examples subdirectory.

Here is a short list of the examples included. For a more complete description, please refer to the comments inside the files themselves.

8.1. Stochastic simulations

stochastic_simulations/collard_2001_theoretical_moments.mod stochastic_simulations/collard_2001_simulated_moments.mod

Two examples of a small RBC model in a stochastic setup, presented in Collard (2001) (see the file guide.pdf which comes with Dynare), both using stoch_simul. Both use numerical steady state computation. The first one uses theoretical moments, the second one uses simulated moments.

stochastic_simulations/collard_2001_analytical_steady_state.mod

A small RBC model in a stochastic setup, presented in Collard (2001) using stoch_simul. The steady state is solved analytically using the steady_state_model block and a helper function to call a solver.

stochastic_simulations/schorfheide_2000_nonstationary.mod

The cash-in-advance model of Schorfheide (2000) (same as estimation/schorfheide_2000.mod) written in non-stationary form. Detrending of the equations is done by Dynare.

stochastic_simulations/ag_2007_trend.mod

Small open economy RBC model with shocks to the growth trend, presented in Aguiar and Gopinath (2007).

stochastic_simulations/nk_baseline.mod

Baseline New Keynesian Model estimated in Fernández-Villaverde (2010). It demonstrates how to use an explicit steady state file to update parameters and call a numerical solver.

8.2. Estimation

estimation/schorfheide_2000.mod

A cash-in-advance model, estimated by Schorfheide (2000). The file shows how to use the estimation command.

estimation/gali_2015.mod

Basic New Keynesian model of Galí (2015), Chapter 3 showing how to i) use “system prior”-type prior restrictions as in Andrle and Plašil (2018) and ii) run prior/posterior-functions.

estimation/rbc_irf_matching.mod

Baseline RBC model with government spending shocks estimated via impulse response function (IRF) matching using method_of_moments. Both Frequentist (Maximum Likelihood) and Bayesian (Slice Sampling) approaches are presented. Additionally, it is shown how to estimate an AR(2)-process by working with the roots of the autoregressive process instead of the coefficients.

8.3. Perfect foresight

perfect_foresight/perfect_foresight_rbc.mod

An elementary real business cycle (RBC) model, simulated in a perfect foresight setup using perfect_foresight_setup and perfect_foresight_solver.

perfect_foresight/perfect_foresight_expectation_errors.mod

Elementary RBC model (same as perfect_foresight/perfect_foresight_rbc.mod), simulated in perfect foresight with expectation errors using perfect_foresight_with_expectation_errors_setup and perfect_foresight_with_expectation_errors_solver: agents behave as under perfect foresight, but they can still be surprised by unexpected shocks, and thus recompute their optimal plans when such an unexpected shock happens.

8.4. Optimal policy

optimal_policy/nk_ramsey_osr.mod

File demonstrating how to conduct optimal policy experiments in a simple New Keynesian model either under commitment (ramsey_model) or using optimal simple rules (osr). Based on Christiano et al. (2007).

optimal_policy/nk_ramsey_steady_file.mod

File demonstrating how to conduct optimal policy experiments in a simple New Keynesian model under commitment (ramsey_model) with a user-defined conditional steady state file. Based on Christiano et al. (2007).

8.5. Heterogeneity

heterogeneity/krusell_smith.mod

Krusell and Smith (1998) model with heterogeneous households. Demonstrates loading a pre-computed steady state via heterogeneity_load_steady_state, solving the model with heterogeneity_solve, and computing impulse response functions.

heterogeneity/krusell_smith_steady_state.mod

Krusell and Smith (1998) model with heterogeneous households. Demonstrates computing the steady state numerically using heterogeneity_compute_steady_state.

heterogeneity/hank_one_asset.mod

One-asset HANK model. Demonstrates loading a pre-computed steady state via heterogeneity_load_steady_state, solving with heterogeneity_solve, and running stochastic simulations with heterogeneity_simulate.

heterogeneity/hank_one_asset_steady_state.mod

One-asset HANK model. Demonstrates computing the steady state with parameter calibration using heterogeneity_compute_steady_state.

heterogeneity/hank_two_assets.mod

Two-asset HANK model with liquid and illiquid assets. Demonstrates loading a pre-computed steady state via heterogeneity_load_steady_state and simulating news shocks.

heterogeneity/hank_two_assets_steady_state.mod

Two-asset HANK model. Demonstrates computing the steady state with multi-parameter calibration using heterogeneity_compute_steady_state.

8.6. OccBin

occbin/rbc_occbin.mod

RBC model with two occasionally binding constraints. Demonstrates how to set up OccBin using occbin_setup and occbin_solver. Based on Guerrieri and Iacoviello (2015).

8.7. Macroprocessor

macroprocessor/bkk_1992.mod

Multi-country RBC model with time to build, presented in Backus et al. (1992). The file shows how to use Dynare’s macro processor.

8.8. Reporting

reporting/collard_2001_reporting.mod

Example of Dynare’s reporting features using the Collard (2001) RBC model.

8.9. Semistructural

semistructural/pac_model.mod

Example of a semi-structural model employing PAC (polynomial adjustment cost) specification.