Replicate "Closing Small Open Economy Models"

Hello everyone,

I’m trying to replicate the paper “Closing Small Open Economy Models” (Stephanie Schmitt-Grohe and Martin Uribe, 2003). However, I am not able to insert into the mod file the eighth section, which uses a different utility function to test the sensitivity of the model.

Can anybody help me? Here is the code that I use to replicate model 1 of the article (it would just change the utility function).

caique_1.mod (7.0 KB)

Thanks for the answers !!

What exactly is your question? You have taken my codes from and did not alter anything materially. Users won’t do you homework for you, but may assist you with specific questions.

In this paper (Stephanie Schmitt-Grohe and Martin Uribe, 2003), basically all the Replicated codes use dynare to solve the linear results; instead of manually solving the linear results: using code model(linear); Is it difficult to solve manually?
Thanks a lot!

What do you mean with solve manually? And why would you want to do that?