I am trying to estimate a Loss function of the form Loss = var(inflation)+alpha*var(output), with var expressing variance and i am using the format i find in one of your models:
Particularly i write the below and also declare Loss and a_Loss in the variables and paramaters block respectively.
Loss = variance.pie + a_Loss*variance.Y;
However, i am geeting the below error:
line 186, col 9 character unrecognized by lexer.
On the other hand if input the above under stoch_simul command i get the below error message:
line 254, cols 8-15: syntax error, unexpected VARIANCE.
Can you please help? Any idea?
You may also find attached the code
DSGE_loss_test.mod (7.1 KB)