Replicating Gali (2015) chapter 3

Dear professor,
I tried to replicate the plots of chapter 3 of Gali (2015) by running your replication code.
jp.mod (10.9 KB)

And I have a few questions:

  1. I suppose what’s inside the two dollar signs i.e. latex name and the so-called “long names” are just for our own reference right? it’s nothing to do with running the model or producing any output.

  1. When I generated the plots following a discount rate shock or a productivity shock (both under a money growth rule), I noticed that the variable nominal money supply does have responses, which is distinct from the plots from Gali (2015) where they are horizontal lines (no responses at all).

Could you please explain what caused the differences?


  1. The \LaTeX-names and long_name are for generating Dynare’s \LaTeX-output. See Full information estimation of linear DSGE models, by Johannes Pfeifer - YouTube
  2. Have a look at the y-axis. That’s 10^{-15}, which is numerically 0.
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Thanks for your reply.
I tried to add the commands as shown in your video and ended up with the PDF file as attached.

gali_jp_2015_TeX_binder.pdf (86.6 KB)

I am wondering if there is a way to modify the appearance of tables and equations in LaTeX?
as I only see commands as below:

  1. Could I confirm with you that by defining those composite parameters, we do not need to declare them in the parameter block? Obviously, this has created problems in LaTeX output. How am I supposed to deal with this?


  1. The include-commands point to the name of the files where you could modify the codes.
  2. Yes, you cannot objects simultaneously be parameter and model-local variables. If you want clean \LaTeX-output, use the
model_local_variable VARIABLE_NAME [LATEX_NAME]

command. See the manual.

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