Replication for chapter 9 in ABCs of RBCs

General DSGE Modeling Replication Attempts
1

I write a dynare code for the chapter 9 in “The ABCs of RBCs” about the MIU model, and the IRF for technique shock is same with the Figure 9-2 in the textbook, and the steady values are same with one of the textbook. According to the textbook, the real variable will not be affected by a money shock. However,
my dynare code show that it’s not so. Why?

MIU.mod (1.0 KB)
findss.m (344 Bytes)
money-shock.fig (167.6 KB)

2

Sorry, but I don’t have the book chapter to check.

3

The Chapter 9- The ABCs of RBCs.pdf (111.7 KB)
Thank your reply, and the attachment is the chapter 9 in ABCs of RBCs.

4

Thanks. A working version should be at DSGE_mod/McCandless_2008_Chapter_9.mod at master · JohannesPfeifer/DSGE_mod · GitHub

1 Like
5

Thank you very much. I find the key is that changing “g(-1)” to “g” in the budget constraint, i.e. equation (9.1) in that textbook.