Hi everyone. I try to replicate the Milani (2016) paper(http://www.socsci.uci.edu/~fmilani/DSGEVAR2016.pdf). The purpose of this paper is that showing the DSGE model does not match the expectation data by DSGE-VAR approach.

I have two questions.

- In this paper, one of the parameter’s prior distribution is set to 100*xi~Gamma(0,15,0.05). How I declare in estimated_params block?

2 This paper uses actual data that output gap, inflation rate, and fed funds rate (x_obs,pi_obs,i_obs)

from FRED and expectation data that output and inflation (exp_x_obs, exp_pi_obs) from SPF. All of the data are seasonally adjusted.

I declare these observations to

x_obs=x ;

exp_x_obs=x(+1)+error;

Is this correct? Since this is my first time to treat expectation data, I do not know how to declare expectations.

Best regards.