NK Baseline Model

Hi Everybody,

Excuse me for my questions which I believe are so basic level. I have been reading Professor Johannes Pfeifer paper, On Observation Equations because I am trying to estimate with data the NK baseline model provide it in Dynare example file. However I have some issues.

  1. I have not been able to compute a steady state model block need it in order to call the steady_state matlab file for to solve for deep parameters.
  2. If anyone is aware of such a similar model code that has been estimate it with data it can be useful for me to see how the data is called and implemented.
  3. In the steady state block should I write just the equation calling the external matlab file or also figure out stationary equations?
  4. As I understand the equations are detrended in the code, do I need to detrend my data right?

Thank you so much for your time,


I am not sure I understand. The NK_baseline.mod uses an external steady state file. So steady_state_model-block can or will be used. If the mod-file and the steady state file are consistently named, Dynare will detect the presence of that file.
Whether you work with detrended data will depend on how you specify your observation equation.