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.

Thanks!

Best,

FY