Smets & Wouters 2003 SDGE Model for Romanias

Stochastic simulations
1

Good afternoon,

My name is Adrian Dorofte and I am an MSc student at DOFIN Bucharest. I am working on my MSc graduation thesis and I am trying to replicate the Smets & Wouters SDGE 2003 Model for Romania. I must say that I am new to Dynare computing, so the code I developed is producing many errors. The data used is obtained from the IMF Financial Statistics, but it is very scarce for my country, so the number of observations is very low. More over, based on the code I provided, Dynare cannot compute the steady-state values for the observed variables.

I will deeply appreciate any suggestions for improvement and modification of the code, as well as any important technical advice. So, I will attach all the files needed (.mod, .m, .xls and the log) in order for anyone who will reply to this topic to have the clear picture.

Thank you very much for your help!
SW_Model_RO_log.doc (130 KB)
ROdata.m (217 Bytes)
romodel_data2015.xls (46 KB)
SW_Model_RO.mod (4.35 KB)

2

Without proper training, you should not embark on this issue. You will most likely fail.

If you have to do this: read my “Guide to observation equations” and then try to fix the mapping between the model variables and the empirical data

3

Hi!
In your code what does mean “gama*tempo”?

Thanks in advance for the answer