Dear Professor Pfeifer,
I hope you can help me,
I created this .mod file to replicate the results of the Debt elastic interest rate model Schmitt & Uribe (2003) and I based the code on https://github.com/JohannesPfeifer/DSGE_mod/blob/master/SGU_2003/SGU_2003.mod
I would like to add data to the model but after reading “A Guide to Specifying Observation Equations for the Estimation of DSGE Models” I have some questions:

Here I declared exp(y_t) where y_t becomes log(y_t) or what you call y_tilde. Now I’m planning to a add y_obs to the var block, b change the model block and c create the varobs block as follows:
a
var c_t k_t h_t d_t y_t i_t tb_t tby_t ca_t cay_t r_t a_t la_t kh y_obs;
…
b
model;
…
y_obs=y_tc
varobs y_obs;The excel file, mydatafile, that I use must have y_obs=log of gdp per capita, is it right?

If I detrend y_obs with HP filter I should add to the stock_simul(…) the HP filter right ?
SOE4.mod (3.4 KB) SOE4_steadystate.m (969 Bytes)