Dynare Software

Dynare is a software of macroeconomic policy package that either run in Matlab or Octove platform. The signature of Dynare has twos. One model is Dynamic Stochastic General Equilibrium (DSGE) Model, while the other is Overlapping Generations (OLG) Model. Two signature-models of Dynare are based on the assumption of on the rational expectations hypothesis. In the official website of Dynare, it announces that Dynare can handle a model to capture

  • agents perfectly anticipate the future;
  • agents have limited rationality;
  • imperfect knowledge of the state of the economic environment;
  • iterative learning process of expectations; and
  • heterogeneity classes of agents for consumers, productive firms, governments, monetary authorities, investors and financial intermediaries.

Implementation of Dynare

addpath C:\dynare\4.6.4\matlab
cd C:\dynare\4.6.4\examples
dir

Example’s Demontration

run example1.mod

dynare example1

Model Summary

Policy and Transition Functions

Approximated Theoretical Moments and Variance Decomposition

Approximated Matrix Correlations and Autocorrelation

Result Plots

run fs2000_nonstationary.mod

dynare fs2000_nonstationary

Model Summary

Policy and Transition Functions

Approximated Theoretical Moments and Variance Decomposition

Approximated Matrix Correlations and Autocorrelation

Result Plots