Rerunning the Base Case

With some models it is customary to rerun the base case using the policy closures before you give the Policy shocks. If so, the closures used to rerun the base case are the same (for each year) as you will use when running the policy deviation (which is why we call them the policy closures).

The Rerun is done because changing the closure often changes the numerical results slightly (even if there are no extra shocks). We dont want such differences to contaminate the reported effect of the Policy shocks.

If you rerun the base case and then run the policy deviation, the differences reported are those between the Policy run and the base case rerun using the policy closures.

There is a choice under the Run Preferences menu which allows you to control whether or not to rerun the base case in this way.

When you are ready to carry out the policy simulations, click on the Rerun Base button which is always visible near the bottom of the screen.

URL of this topic: www.copsmodels.com/webhelp/rundynam/hc_rerubase.htm

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