External SS file and Bayesian estimation

#1

Hello everybody,

When I use an external file for the steady state, how should I insert the parameters I want to estimate in that file?

#2

If you use the structure of the file provided in the examples, the current parameter values will be passed to the file.

#3

Thank you for you reply, I try to explain better my question.
I set up my files this way, but I am not sure about how to implement the bayesian estimation correctly: should I just insert at the bottom "param, normal_pdf, 4.00, 0.10; " or should I modify the steady state files as well?

P.S.
Do you see anything relevantly wrong in my companion files?

Equilibrio.m (2.1 KB)
Marco_RBC_nolin.mod (1.3 KB)
Steady.m (3.4 KB)

#4

You need to write a proper steady state file. See e.g. https://git.dynare.org/Dynare/dynare/blob/master/examples/NK_baseline_steadystate.m

#5

Thanks a lot for the tip.
That model ran hence I tried with a more difficult one and dunare gave me this message

“Undefined function or variable
‘eps_c’.
Error in No_exp_steadystate
(line 66)
lam_p = (eps_cbeta_p(c_p -
zeta*c_p)^(-sigma_c) )/P; % 1.
Error in”

What am I doing wrong?

dataGerali.m (5.1 KB)
No_exp.mod (32.6 KB)
No_exp_steadystate.m (16.1 KB)

#6

When you use eps_c in that line of your code, its steady state value has not yet been defined by you.

#7

I don’t compleatly understand, anyway how can I fix it?

#8

You are providing an analytical steady state. That implies that you have values for all variables. So you must know eps_c.

#9

Right! It is obvious now.

Thank you.