Replication attempt for Uribe and Yue(2003)

Hi everyone, has anybody worked on Uribe and Yue(2003) paper? Is it possible to replicate it using Dynare or does it require a global solution method? It may be a trivial question but how can I understand if a paper requires global solution method?

Are you referring to Uribe/Yue (2006) “Country spreads and emerging countries”? That paper should be replicable in Dynare. All inequality constraints are assumed to be binding

Thank you very much. I will try.

Good afternoon Ian,

I am also trying to replicate the said papper DSGE model in dynare. Did you manage to do it?

I just cant find the stationary state. Its probably a problem in one of the equations, but i am not finding the source of the problem and matlab just doesnt seem to be able to calculate the stationary state from my code.

UribeYue2006.mod (7.1 KB)

If you are not computing the steady state analytically, provide explicit initial values. For example yy cannot be 0.