Dear all,
I try to replicate the paper “A new Ecnomic Framework: A DSGE Model with Cryptocurrency” from Asimakopoulos, Lorusso and Ravazzolo. At the moment I stuck with the parameter. One parameter should be a share of crypto. Common Prod. on Crypto. total Productivity, so the share should be Xi/Phi. My question is: How should I write such a share as a parameter? For parameter there are no brackets allowed. It would me great if someone can help me out. Thank you.
What do you mean with
Hello Mr. Pfeifer, first of all Merry Christmas to you.
I will upload my mod file. Following the paper of Asimakopoulos, Lorusso and Ravazzolo, I need to define the share Xi/Phi as a parameter. As you will see in the mod file, Xi and Phi itself are also endogenous variables. When I try to run the mod file, I receive the following error message: ERROR: ALR_rep_1.mod: line 59, col 5 - line 70, col 6: Symbol xi declared twice with different types!
Can you help me out with this problem? How can I define a parameter as a share? Do I need a specific notation?
ALR_rep_1.mod (11.3 KB)
I still don’t understand the problem. A parameter is time invariant. The ratio of two endogenous variables is not constant and therefore clearly not a parameter. What often pops up in models as a parameter is the ratio of two variables in steady state. That can easily be done.
Dear Mr. Pfeifer,
yes, this is exactly what I’m dealing with. Please can you tell me how to define such a ratio of two steady state variables as a parameter?
Use the STEADY_STATE()-operator:
share=steady_state(Xi)/steady_state(Phi)