Inflation Targeting Model

Dynare help (legacy posts)
1

Hi

I am an undergraduate using Dynare for the first time and am trying to estimate an inflation targeting model. The model I want to estimate is very simple and is in the attached .mod file.

I have data for the US on real GDP, inflation, the 3 month T-bill rate and the natural rate of output (via a Hodrick-Prescott filter) which are in the attached spreadsheet.

When I run the .mod file in Octave there are no errors but there are also no results displayed. Could someone please explain the faults in my code, of which I am sure there are many and how to view the results.

Any help would be much appreciated.

Dan
US.xls (37.5 KB)
3.mod (855 Bytes)

2

I work with a DSGE model in which I have to see the reaction of the inflation targeting to differet shock but the problem that I don’t have a special fonction of inflation targeting to write in matlab code but to have an idea about the write code of an RBC model or a DSGE model (see the example of user guide dynare) this is the right code of the example in the user guide:

var y c k i l y_l w r z ;
varexo e;
parameters beta psi delta alpha rho epsilon;
alpha = 0.33;
beta = 0.99;
delta = 0.023;
psi = 1.75;
rho = 0.95;
epsilon = 10;

model;
(1/c)= beta*(1/c(+1))(1+r(+1)-delta);
psic/(1-l) = w;
c+i = y;
y = (k(-1)^alpha)(exp(z)l)^(1-alpha);
w = y((epsilon-1)/epsilon)(1-alpha)/l;
r = y*((epsilon-1)/epsilon)*alpha/k(-1);
i = k-(1-delta)k(-1);
y_l= y/l;
z = rhoz(-1)+e;
end;

initval;
k = 9;
c = 0.76;
l = 0.3;
w = 2.07;
r = 0.03;
z = 0;
e = 0;
end;
steady;

varobs y;

estimated_params;
alpha, beta_pdf, 0.35, 0.02;
beta, beta_pdf, 0.99, 0.002;
delta, beta_pdf, 0.025, 0.003;
psi, gamma_pdf, 1.75, 0.1;
rho, beta_pdf, 0.95, 0.05;
epsilon, gamma_pdf, 10, 0.5;
stderr e, inv_gamma_pdf, 0.01, inf;
end;

estimation(datafile=simuldataRBC,nobs=200,first_obs=500,
mh_replic=2000,mh_nblocks=2,mh_drop=0.45,mh_jscale=0.8,
mode_compute=4);