Smets-Wouters in Dynare 4

Dynare v4 (legacy)
1

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:

model(linear);

#usmodel_stst;

:
:
:
end;

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?

2

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).

Paolo

3

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?

4

Hi,

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

Bill

5

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

6

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

Best, Stéphane.

7

Thanks!