Replicate "Closing Small Open Economy Models"

Steady state
1

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 !!

2

What exactly is your question? You have taken my codes from https://github.com/JohannesPfeifer/DSGE_mod/blob/master/SGU_2003/SGU_2003.mod and did not alter anything materially. Users won’t do you homework for you, but may assist you with specific questions.

3

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!

4

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