My model is working properly (thankfully), albeit with a simplification relative to my initial hopes, but my next objective is to see how well the model predictions matche observed empirical regularities. How would I do this? While the share of labor is normalized to one so that the steady state prediction can be readily compared to the real world, what about other model variables, such as consumption and capital? Put more compactly, how can I simulate an economy starting at some given time period with the given corresponding variable values and see how it evolves for some T years?
I have checked extensively online, but I cannot find any other documentation other than the stoch_simul command that I am already using. (Code attached)
Thank you as always for your insight and time!
benchmarkcb.mod (1.4 KB)