Replication data for: Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach

Hello,

I am a beginner who has just started learning Dynare.

Recently, I became curious about how Bayesian DSGE models are used and how they differ from standard IRFs. I compared them using the replication data for “Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach” to explore this.

However, when I try to run the code, I encounter the following error message:

ERROR: usmodel.mod: line 80, col 15: syntax error, unexpected ‘;’, expecting EQUAL

The line causing the error is: # usmodel_stst;

When I remove the semicolon and rerun the code, I get another error message:

ERROR: usmodel.mod: line 84, col 8: syntax error, unexpected INT_NUMBER, expecting EQUAL

I am unsure how to properly execute the code for “Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach”. Could you please provide guidance on how to resolve this issue?

Additionally, I would like to deepen my understanding of Bayesian DSGE models and learn how to apply them in practice. I want to follow materials or codes step by step to grasp the concepts thoroughly. Could you recommend any resources, books, or papers that would be helpful for someone like me? Your guidance would be greatly appreciated.

Thank you very much for your help!

  1. The original replication files are for Dynare 3.6.4. Use
    DSGE_mod/Smets_Wouters_2007 at master · JohannesPfeifer/DSGE_mod · GitHub
  2. See for example Learning about Empirical DSGE Analysis

Professor jpfeifer,

Thank you so much for always taking the time to respond to my questions. Following your recommendation, I plan to start with the book “Bayesian Estimation of DSGE Models.” I truly appreciate your guidance. Thank you again!