I have a medium scale NK model.
I have managed to solve it. I have the mod file attached.
But, I am also trying to estimate the model using Bayesian methods. Attached as well
I receive an error all the time, saying not enough parameters and cannot understand what I am missing.
Can someone help me wih the estimation. In particular, with the priors and in finding a steady state.
I am attaching the data I am usig.
detrend_data.txt (14.3 KB)
medium_scale_fiscal.mod (7.41 KB)
medium_scale_fiscal_estimation.mod (6.31 KB)
- The parameters
[quote]std_vt, r_bar, std_at, std_lt, std_it, std_pit, std_nt, std_wt,
R_bar, cy_bar, Iy_bar, gy_bar, Igy_bar, try_bar, wLy_bar, rky_bar, by_bar, tao_cbar, tao_kbar, tao_lbar, std_tc,
std_tl, std_tk, std_tr, std_ig[/quote]
are not estimated, but also have not been set before estimation. Therefore, they are NaN.
2. I am not sure you are correctly reading in the data. The text-file you use does not work. I am attaching a mat-file that can be read in
3. I am pretty sure your observation equation is not correct. The concept of measured inflation in the data does not map into the model one (gross vs. net, demeaned or not). Please see Pfeifer(2013): “A Guide to Specifying Observation Equations for the Estimation of DSGE Models” sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf.
detrend_data.zip (9.91 KB)