Hi all I hope you are well, I am currently trying to replicate the model; Macroprudential and Monetary Policies: Implications for Financial Stability and Welfare by Margarita Rubio.
This is my first attempt at creating or replicating a model and I have some novice questions. Attached is the model and my attempt at replicating it.
Q1. Theoretically speaking, if I put in the main model equations on p26 in dynare, after I have declared the variables, parameters, initial values and shocks, should the model thoeretically run as in the paper?
I just have no idea how to start replicating the model.
Many thanks for your time, any input is appreciated, I am on a tight deadline to replicate this model!