Calibrating DSGE for Mexican Economy

Dynare contributions and examples
1

Hi,

We are trying to estimate a model to explain the role of oil price shocks in the mexican economy. We used the vanillarbc.mod example provided in the web page as an initial model, and added: capital adjustment costs, a ghh utility function and the open economy trade restriction complimented with some form of “disutility” of borrowing (as in Saez Puch 2002).

Using a mix of parameters from the initial model and parameters from other researchers we got the model to run using the original initial values. However, we are having trouble estimating it for the data that we have. The biggest problem is finding suitable initial values that replicate the data.

We would really appreciate it if someone could suggest a method for doing this…

Thank you!

Marlene and Paloma
RBCoilprice.mod (2.19 KB)

2

What kind of math would an economics minor entail? I am going to be a Pre-Law major, but I wanted to choose a math friendly minor for marketing purposes. Also, I want the option of going into corporate law, and I will need math skills for that. On that note, I feel it would be in my best interest to minor in economics. I just wanted to know how intense and advanced the math would get. I’m an average math student.

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