Some questions about CIA model (Chatpter3) by Carl E. Walsh

Dynare help (legacy posts)
1

Hi everybody,
According CIA dynamics (chapter 3) by Carl E. Walsh, I coded inflation5.mod in Dynare 4.2.0. But the codes (CIA.mod) provided by Carl E. Walsh is quite different from me.

My questions are:

  1. I have no idea of the row of 22-25 in CIA.mod. what does it mean?
  2. The 35th row in CIA.mod is quite different from the 23rd row in my inflation5.mod.There is an additional (ISS/(1+ISS). Why?
  3.      Is anything wrong in my code, inflation5.mod?

Can anyone help me please?
Thanks a lot in advance.

Jessica L
inflation5.mod (786 Bytes)
CIA.mod (1.11 KB)
CIA model.pdf (30.3 KB)

2

Are my questions boring? Why nobody would like answer them?
Or maybe they are not good questions.
Any advise is desired.

3
  1. He defines a bunch of parameters that are not used in the model. They are redundant and I have no idea why they are there as they serve no purpose.
  2. There are two possibilities. First, the equation in the pdf is wrong, maybe due to a typo at loglinearization and the mod-file equation is correct. Second, the pdf-equation is correct and the mod-file is simply wrong. I can’t tell. Please check with the original non-linear FOC
  3. At first sight your code seems to be correct and better than written than the original. Hence, I would rather trust your mod-file.
4

dear jpfeifer
thank you very much!