Dear Dynare Community,
I am a master’s student working on a project that involves extending the Iacoviello (2005) model. Specifically, I aim to modify the impatient households in the original setup to represent renters and analyze the impact of this change on the model’s dynamics.
To carry out this extension, I need the nonlinear version of the Iacoviello (2005) model in Dynare. While I have accessed the log-linearized version from the Macroeconomic Model Database (MMB), it’s challenging to modify for my purpose since I prefer to input the original nonlinear equations directly.
If anyone has a Dynare file with the nonlinear version of Iacoviello (2005) or any similar implementation, I would greatly appreciate your assistance. A file with clear comments would be especially helpful for understanding the structure and making modifications.
Dear Professor @jpfeifer,
Many thanks for your response sir. The code is working and it really aids me making further progress in my research paper. Thanks a lot!
Dear Professor @jpfeifer
The dynare code ran but the IRF’s are not identical to the paper. It seems that housing preference shock and inflation shock is not included in dynare model equations. Here is the result I got. Thus is not identical to the results in the paper
Thanks professor regardless. I think the issue is with the way shocks are defined and added in the model. I will try and make changes to and will update here incase I make any progress. I appreciate your time for responding to my query!
