Hi to all,
I’m a green hand to Dynare. And I want to estimate some of the parameters by matching the variance of some data.
After looking into the reference manual, I have several questions on how to proceed moment calibration with Dynare.According to the reference manual, the code lines are of the following form:
moment_calibration; y_obs,y_obs, [0.5 1.5]; //[unconditional variance] end;
I’m very confused with these code lines:
- What does the first y_obs mean? What does the second y_obs mean? Which Y is in the model and which is in the data?
- What does two numbers in square brackets  ? Is it an interval?
- Where are the estimated parameter values stored?
- How do I obtain a proper variance of GDP. Do I need to compute var(Y_c) or var(Y_c/Y_t)? (Where Y_c is the cycle term after HPfiltering and Y_t is the trend term.)
I’m so sorry for these stupid questions.