Finding initial values

General DSGE Modeling Replication Attempts
1

Hi,

I am beginner with Dynare. When replicating the results of the baseline model in the paper Ebell (2011). On the cyclicality of unemployment: Resurrecting the participation margin, I have some problems with finding the initial values for endogenous variables.

I followed the steps in the appendix taking some target values (for f, q, l) and steady values (for w and c), and I also have some derived equations from the steady state equations, but a number of equations cannot seem to be balanced and have non-zero residuals.

Can anyone please let me know what I have done wrong and what would be the correct way to solve the problem?

Beste!
baseline.mod (2.1 KB)

2

In your production function, you are missing an exp() around the mean 0 variable z:

    y = A * exp(z) * k(-1)^alpha * n(-1)^(1 - alpha);

baseline.mod (2.1 KB)

1 Like
3

Much appreciated!