Hello, I am trying to quantitatively assess my simulated DSGE model in fitting key macroeconomic statistics. I have a few questions:
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Is it correct to compare the standard deviation of the cyclical component of key macro variables in the data with the standard deviation that I see under “Moments of simulated variables” after running the code, to say something about the fitting properties of the model?
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How do you assess whether these standard deviations are “close enough”?
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Do you have any clue of why the volatility of investment that I osberve under “Moments of simulated variables” is very small, whreas it is generally the most volatilile component of GDP? Which parameters, generally speaking, might affect this in a standard DSGE model?
Thank you!