What is it?
Dynare is a pre-processor and a collection of routines developped by
Michel Juillard and his team which solves
non-linear models with forward looking variables. It can be used in
either
MATLABŪ or
Octave (an open source and free
Matlab clone). It is freely downloadable from the
Dynare website (
go to download page)
Dynare can solve forward looking non-linear models under
- Perfect foresight, when the model is deterministic
- Rational expectations, when the model is stochastic
In the first case, the solution method preserves all the
non-linearities and relies on a relaxation algorithm (Details can be
found in Juillard (1996)). In the second case, Dynare computes an
approximate solution that relies on perturbation methods.
Note that Dynare has acquired new functionalities over the last few
years and can now solve for optimal policies and estimate models using
different estimation techniques.
You can find various introduction to Dynare on the website (
go to
documentation) and there is a dedicated
forum where you will find
answers to most of the questions you may have.
You may also download the slides that are used in the introduction to
DYNARE. (
Download PDF)
A Suite of Models
On this page you will find a suite of models that will be used in
various courses of the program. These models include
- A close economy model: Real model
- A close economy model: Nominal model with price adjustment
costs
- A close economy model: Nominal model with staggered price
contracts
- A small open economy model: Real model
- A small open economy model: Nominal model with price
adjustment costs
- A small open economy model: Nominal model with staggered
price contracts
- A 2-country economy model: Real model
- A 2-country economy model: Nominal model with price
adjustment costs
- A 2-country economy model: Nominal model with staggered
price contracts
A pdf file describes the models (Download PDF)
A zip file contains the Dynare codes of the models (Download Codes)
