# Estimating Smets and Wouters

**URL:** <https://forum.dynare.org/t/estimating-smets-and-wouters/22360>\
**Category:** ML/Bayesian estimation\
**Created:** [27 April 2023 11:05 UTC](https://forum.dynare.org/t/estimating-smets-and-wouters/22360 "2023-04-27T11:05:05Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Michele](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/ed8c4c/32.png) [@Michele](https://forum.dynare.org/u/Michele)\
**Post date:** [27 April 2023 11:05 UTC](https://forum.dynare.org/t/estimating-smets-and-wouters/22360/1 "2023-04-27T11:05:05Z")

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Hi guys!

I’m a Ph.D student and I have to replicate the Smets and Wouters DSGE model but I’m encountering difficulties.  
First of all, in their article they indicate with gama\_bar as “the common quarterly trend growth rate to real GDP, consumption, investment and wages”, but in the formula there is a gama-1.  
What does that parameter refer to? Can someone help me?  
I attach the image for greater clarity. Thank you so much for any information.  
 ![image](https://forum.dynare.org/uploads/default/original/3X/4/c/4c70df0978f0a5d3459756f748f18515e3119514.png)

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [27 April 2023 12:56 UTC](https://forum.dynare.org/t/estimating-smets-and-wouters/22360/2 "2023-04-27T12:56:34Z")

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\gamma should be the gross growth rate, i.e. 1.02 indicates 2 percent net growth.