Dear Pfeifer,
Many thanks for your help! I have rectified my code and here attached again. However, even though the code can work now, the original problem still exists, which is “The rank condition ISN’T verified!”, and it seems to need a really long time to run. What’s the problem? Does it mean that there is something wrong with my model?
As the issue about news shock in my code, I just followed the " Unrealized expectations ". It seems that epsd_stern4aux = epsd_stern4;
epsd_stern8aux = epsd_stern8; is not redundant. And I also referred to the code of Khan and Tsoukalas (2012), whose paper mainly studies the news shocks. Here attached Khan’ code as well.
In addition, since I have manually-derived steady state conditions which is shown as “EQUILIBRIUM VALUES” in my code, can I use the “steady_state_model” command or write a separate steady state file to speed up the code running process ?
And I use Bayesian to estimate some parameters and assign the value to some other parameters using calibration, I am a bit confused about the parameters block. What’s the difference of the value assigned to the estimated parameters between the value in parameters block and the estimated_params block ? I think the estimated_params block has already contains the initial value, prior mean, prior s.d. .
I am looking forward for your reply.
Regards,
usdata54aspextrev.m (17.4 KB)
Khan.mod (16.8 KB)
code.mod (12.9 KB)