I have tried to estimate a version of Smets and Wouters (2007) model using the bvar toolbox in Dynare 4. When i enter the options bvar_prior_tau =10 as they do, i get the following error message :
“syntax error, unexpected INT_NUMBER, expecting FLOAT_NUMBER or MINUS or PLUS”.
If i enter for instance bvar_prior_tau = 1e1, everything is fine. To my knowledge, Sebastien does not mention this in the documention (bvar a la Sims). Is it a bug or a computer-specific problem (I use Windows vista)?
Thanks for reply.