Frustration is not a Crime

Sometimes I read or hear an opinion, that voting should be compulsory. Last time I saw it in Waleed Aly article. It is interesting that Mr. Aly lives in Australia where voting really is compulsory. If Australian does not go to an election, he or she will have to pay a fine for this “crime”. In my country, we de facto used to have an obligation to vote too. During the communist era, citizens we force to go to the election despite they had no choice but to vote for the communist party. The elections could not change anything, but still, people had to go there. If they did not go, the could be fired or worse.

Because of this experience (which people still remember), I believe it would be extremely unpopular to force people to go to elections again. Czech people value their freedom and the possibility not to go to the election is part of it. So some politicians talk about it from time to time (and like we know, the politicians like to talk), but no one tries to make it real.

Running Simple DSGE Model in Dynare III – Further Analysis

Last time we analyzed the steady-state of our model. We have developed equations which we can use to calculate the steady-state values for given parameters values. Today, we use these equations to see how could changes in parameters values affect the variables values. We can use the Octave (or Matlab) script which we developed last time. We just do minor updates. We select one variable and we assign a range of value instead of single value to this variable.

Let’s take parameter \psi . We would expect that lower values of this parameter would mean that the household would work more and also consume more because its willingness to work would increase. Let’s test our theory. We will examine an interval between 1.0 and 1.8. We will ask Octave to generate a vector of values between these two boundaries. We will to it by this command:


The value in the middle sets a size of space between these two values. In fact, this values defines the size of the vector. The value 0.001 is small enough to provide us a smooth plot. We also substitute all *, / and ^ operators with .*, ./ and .^. The standard operators without dots are used to operations with two numbers, two vectors or two matrices. But in our case, we want to multiply (or divide or power) all values of the vector by a single value. This is completely different operation than multiplying two vectors or two matrices. That’s why we use the operators with dots.

Running Simple DSGE Model in Dynare II – The Results

In the previous article, we described the simple DSGE model and prepared source code to run this code in Dynare. Today we will go through results of the simulation. We will explain the most important outputs and we will make an economic interpretation of them. Just to remind you, you run the model by typing the following command into your Octave or Matlab console.

dynare model.mod

I saved the model into a file named model.mod. Also, make sure that your current directory is the one where the file is stored. I used Octave for the simulation because I don’t have a Matlab license. However, you should get the same results using Matlab.

Business Process Flow Disappears after December Update in Microsoft Dynamics CRM

Microsoft Dynamics CRM is now part of Microsoft Dynamics 365 business solution. For on-premise customers, your CRM will be rebranded with December Update. December Update also brought some new cool function which will improve users and administrators productivity (like an editable grid). As a part of these changes, Microsoft created a completely new editor for Business Process Flows. I really appreciate two things:

  • It is much easier to edit complicated Business Process Flows.
  • You can run specific Workflow for each flow stage.

However, we experienced an error after an update of our development environment. Some of our flows were somehow damaged during the update. After the update, the flows were not visible on entities forms. When I run the “Switch Process” command, I saw an error. I dug in logs to get more information about the error, but I found only Unexpected Exception messages. It was also impossible to deactivate the flows or to export them as a part of a solution. Finally, I was able to run the “Save as” command to create a copy of the flows. I set one of the copies as the highest priority process (using the “Order Process Flow” command). Then a new record for the entity was created successfully with the flow active on its form. Unfortunately, I was not a final solution because it did not solve the problem for already existing records.

Running simple DSGE model in Dynare

Dynare is a quite sophisticated software for economic simulations. It is mainly used for estimations of Dynamic Stochastic General Equilibrium Models (DSGE models). DSGE models are considered the state-of-the-art of economic simulations and predictions and they are used by plenty of central banks and ministries of finances all over the world.

You can find a lot of articles about DSGE models on the internet. Most of them are really sophisticated, however, they are usually written for people with good knowledge of mathematical optimization and RBC models theory. I would like to write this article as Dynare tutorial for people with limited knowledge of both economic models and mathematical optimization.