Hi
I use one of the math softwares to get the steady state of the model (The model is relatively large and the analytical method is very difficult). That is, I solve the system of Steady State equations in the software
In calibration, we encounter several types of parameters
1- Parameters such as beta delta and … for examle beta=0.98 …
2- Variables in the steady state: such as c_ss/y_ss g_ss/y_ss and … for example c_ss/y_ss=0.54
3- Variables such as interest rates, inflation rates, etc( in the steady state)
My understanding is that when I use the ratio, there is no difference between annual and quarterly data.For example, for c_ss/y_ss, there is no difference between annual and quarterly data. Because it is a ratio.
Now with this understanding; I consider the rest of the parameters annually.For example
, the annual inflation rate=0.05
Annual interest rates=0.06;
I also consider other parameters in this way: beta=0.98 delta=0.02 annualy
So finally my calibration is as follows:
c_ss/y_ss=0.54
g_ss/y_ss=0.15
the annual inflation rate=0.05
the annual interest rates=0.06;
beta=0.98
delta=0.02
The rest of the parameters are obtained by solving the system of equations in the mathematical software.
Am I wrong?Or I must use quarterly data