Smets-Wouters in Dynare 4

I try to run the code along with Smets-Wouters (2007 AER). They do have a dynare code for their model, however, dynare v4 won’t run it since the error in the following line:




I understand the symbol # allows some computation between “model” and “end”, but it can’t evaluate the function like usmodel_stst.m used in SW (2007). I think it works for version 3, so why remove this nice feature?

Hi bigbigben

I have the same problems with the # sign, and I am trying to figure out how to solve them. Anyway, I think that if you want to include a file (as in your case) you should use the following syntax

@#include ''usmodel_stst.m"

Put everything in one line. I do not know if you have to put or not the ; sign at the end of the line (although I think you do not have to do it).


I have exactly the same problem.
It seems that, the previous version of dynare allowed to use an auxiliary m-file to define the steady state of the model in a separate (eg. usmodel_stst.m). I suppose inserting the “#” symbol is a way to say that some of the parameters envolved in the equations defining the steady state has to be estimated. Does anyone know how to proceed in dynare 4?


Would you mind telling me where to download their Dynare codes? Thanks.


I’ve been looking for the code as well - could someone post it?

Hi, you can obtain the code and data used by Smets and Wouters here.

Best, Stéphane.