I have the attached file. Just a simple baseline RBC model.
Standard deviation of investment is 0.8% where it should be something around 3-4%. I cannot see what I am doing wrong. I would be very happy if anybody helps.
baseline.mod (2.7 KB)
I attached the wrong file. This is the correct file:
baseline.mod (2.6 KB)
You are supposed to consider the log of investment to have it in percent:
baseline1.mod (2.7 KB)
Thank you professor.
I have the log-linearized version as well, with government spending shocks. I am trying to replicate the baseline model in the attached paper (no world interest rate shocks, no capital utilization, no habit formation). I still find very different standard deviations (the only standard deviation that matches is of output). Why could that be?
b2.mod (3.3 KB)
letendre2004.pdf (175.3 KB)
If you are conducting an exp()-substitution, then the variables are already in logs.
I know that. I beg you to check the file. ii cc nn are logs, I defined them like that. But their standard deviations are very weird. i c n’s standard deviations are very weird too. They don’t match those in the paper.
- Given your use of
sigma_z to scale the standard deviations, you need
var e_z; stderr 1;
var e_g; stderr 1;
G/Y=0.2162 is the target, but for the model in steady state 0.12/exp(0.56873)=0.07.
so check the calibration.
Thank you SO much. I fixed them.