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

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


  • 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


  • Dynare Manual