# Gali and Blanchard (2010)

Dears

I try to replicate the model of Gali and Blanchard (2010) and try to evaluate the welfare loss under second order approximation. but there are some errors in the code. I don’t know where is the mistake., if you could help me please? Actually, I am new user in DYNARE

thanks much much.

1. There is a semicolon missing at the end of the parameter definition after gdelta.
2. In the definition of rho the brackets of the log are missing
3. The definition of xi0 has a bracketing error.

Just follow the displayed lines in the error messages.

Dear jpfeifer,

Thanks much, could I ask if I want to evaluate welfare with second order approximation. could you tell me the starting point for doing that?

Thanks again

Dear professor jpfeifer,

I try a lot and follow all the errors to rectify. could you please tell me where is the problem.

Thanks much

```A*N = Y; //Production function (from part of intermediate good firms) ```
is not a correct assignment. I must be

```Y=A*N; //Production function (from part of intermediate good firms) ```

sorry for taking this time, I do as you mention. but there is an error includes:
Y is not a parameter !
even I put in the variable, I know isn’t parameter. how I can solve this problem.

Thanks a lot

You deleted the mod-file, so it’s impossible to tell.

Dear Professor,
Could I ask If I want to transform the Phillips Curve from Linear to non- linear equation (in levels). I write the equation which I had. I follow some posts on the forum. but I couldn’t understand what’s the steps to transform, can you help me with this point? Thanks a lot

π_t = βE_t {π_(t+1) }-K_0 u_t+K_L u_(t-1)+K_f E_t {u_(t+1) }-λ γΦ (a_t )

Look at this wp

wiwi.uni-augsburg.de/vwl/ins … er/313.pdf

Hope it helps.

Dear jpfeifer,
I am a new user in Dynare and I am studying the model of Blanchard and Gali (2010), but there are some errors in the code. Would you please share the code with me?

Thanks you very much!

I replied to your email. You most probably did not download all necessary auxiliary files from the Github-folder