Avdjiev (2016).pdf (1.3 MB)
Dear all,
I am doing a replication work of Avdjiev (2016). I have encounted a problem that the estimation procedure does not change the parameter value specified as prior mean. Do I misspecify the measurement functions or prior expressions or any other instructions? I am a new user of dynare, any help would be greatly appreciated. Here is my .mod file and data. I also enclose the paper and my note for the model.
Yours,
Mike.
note.pdf (64.8 KB)rep_change2.mod (8.9 KB)
rep_data.xlsx (33.4 KB)
Avdjiev (2016)