I have basic RBC model with temporary and permanent shock.(please see attached) I would like to add indivisible labor into the model. Could you please explain to me how i can do it or give me some suggestion where i should look for?
best model.mod (1.82 KB)
Dear Johannes,
Thank you very much for your reply. I looked at the codes that you suggest by following the Hansen’s article. I built the model and it worked. I found st. dev. and corr. of them with output. I could not understand why the standard deviation of c/y , w/y, y_h/y are the same. I feel that I did a mistake somewhere in the model. Could you please look at my codes and tell me whether i made a mistake somewhere? or these results are okay.
Best,