I am an undergraduate studying economics and trying to understand a more complex new keynesian model as it is given by Ravenna & Walsh, “Welfare Based Optimal Monetary Policy with Unemployment and Sticky Prices: A Linear-Quadratic Framework” (2010).
Since I do not have any experience in either replication of a model or the use of dynare I am not capable of rewritting their given complex dynare mod-files into simplier ones, which I can work with.
I attached a text file containing my code so far.
I have a slight idea of what I might have done wrong: I think the way I arranged the model is wrong, since not all variables are defined properly.
The mod.files as well as the paper can be found here: aeaweb.org/articles?id=10.1257/mac.3.2.130
It would be a big help if you could give me some crucial hint or name literature which might help.
Thank you in advance.
modfile.txt (9.07 KB)