Problem with osr

Dynare help (legacy posts)
1

Hi. I’m practicing coding with an IMF paper.

This mod file is working but I think is somewhat odd.

The optimal parameter value is strongly affected by the values I put in, and sometimes is not working depend on what the values are.

Also THEORETICAL MOMENTS are not available.

Any comment will be helpful :slight_smile:
pr_osr2.mod (2.88 KB)

2

The theoretical moments of some variables are not available because, at least for the optimal parameters values, your model has a unit root (you can see that by running “check”). Hence Dynare cannot compute moments of the non-stationary variables.

Best,