Example Derivation&Estimation:NKstochasticgrowthmodel

Here is some material I wrote up, on the setting up of a 3 equation new Keynesian model with a stochastic trend that can be estimated with ML or Bayesian methods. I also attach the dynare (version 4) code and data. The draft is not particularly polished, but I think it will be useful for people beginning to derive and estimate these models. And please let me know if you find any mistakes or typos.

DemoData.txt (16.4 KB)
rescaled.mod (4.31 KB)
MickeyMouseModelforEstimation.pdf (111 KB)