Hi everyone,
I’m trying to replicate the Smets & Wouters (2024) model in Dynare, with the goal of later adapting it to Brazil. Before making any modifications, I want to reproduce the original model as closely as possible, but I’m struggling: Dynare runs without errors, yet my estimation results and/or IRFs look odd (unexpected magnitudes/signs/persistence). This made me suspect that something might be wrong in my model setup (equations, observables, normalizations, measurement equations, etc.).
Has anyone here already tried to replicate the original paper (or has a working .mod file / replication code) and could share tips on common pitfalls?
Below is my replication block:
SW2024_v10.txt (54.5 KB)