Hi everyone,
I am facing an issue when performing a sensitivity analysis in a Multivariate Filter (MVF). In particular, I want to analyze how potential output reacts to changes in the steady-state trend growth parameter of non-mining GDP, g_ss.
While running the same exercise for the steady-state unemployment rate (u_ss) lleads to small but noticeable changes in the estimated potential output, modifying g_ss appears to have no effect on the results. I tested this in two ways: by changing g_ss directly in the calibration block and by modifying it within the .mod file (i also tested using with set_param_value) , but in both cases the estimated potential output remained unchanged.
As pointed out by my advisor, the parameter does in fact affect potential output (he show me his results).
I would appreciate any guidance on how to correctly implement this sensitivity analysis or on potential reasons why changes in g_ss may not be reflected in the estimated potential output.
Ejercicio_2.mod (3.6 KB)