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

Please feel free to raise any comments or issues on the website’s Github repository. Pull requests are very much appreciated.





## 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
• Save as mod file, not as m file
• Running dynare on a mod file
• What Dynare’s preprocessor does
• You can have MATLAB code in a mod file
• Steady-state values are not unique, sometimes not all variables can be pinned down
• 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