Smets/Wouters (2007) initial parameter values

Hi everyone,

Recently I am studying the replication code of Smets and Wouters (2007). I want to know how the initial value of a parameter is set. For example, in this line:

stderr ea,0.4618,0.01,3,INV_GAMMA_PDF,0.1,2;

where does the 0.4618 come from? I can’t find it in the paper and I found that the estimation result quite depends on the initial value being set. Thanks!

Hi kevin_b,

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