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: estimated_params; 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 pape…

Hi kevin_b, [image] Question about estimation initial values of SW_2007 paper Estimation Dear Dr., May I ask where those initial values of eitimated_params are from in Smets_Wouters_2007 paper? They are very different from prior means. Thanks! Best,

Smets/Wouters (2007) initial parameter values

General DSGE Modeling Replication Attempts

cmarch 27 June 2020 02:54 2

Hi kevin_b,