Hi, guys:
This question is not about how to use dynare, but about the parameter values in DSGE models. I have seen some paper calibrate a parameter log(Lss)=397or some number abround this value. For example, Primeceri and Justiano (2007 AER), Christiano, Motto and Rastagno (2008). I don't know how this value fit into the model they use. Is it correspoding to a steadystate level of labor Lss=exp(397)=2.5996e+172? Their utilitity function is in the following form: U(C(t))=log[C(t)-h*C(t-1)]-Psi*L(t)^(1+SigL)/(1+SigL). I can't find correspondence between the functional form they used and the value of log(Lss) they calibrated.