Has someone replicated on dynare the model in the paper “Ambiguous Business Cycles” of Ilut and Schneider (AER, 2014)?
I’m having difficulties to find out the way to feed the extended model with the general formulation in section II and to replicate the shock from the perspective of the econometrician.
Thanks by advance!
You may want to have a look at their replication files at https://www.aeaweb.org/articles?id=10.1257/aer.104.8.2368
gammas_amb.m seems to have coded the linearized model equations.
Dear @jpfeifer, thanks for your answer, but I already tested this online appendix, but without success.
I checked the steady state equations and I found out the same result. Therefore, this online appendix does not deliver the impulse response presented in the paper (at least I wasn’t able to get on Matlab), only the estimation results.
Moreover, I still have doubts about how to feed the extended model with the simple model.
Perhaps, I might doing something wrong in this replication, since I’m using dynare and they didn’t.