Hi all,
Forgive me for the elementary question, I am a student in the process of learning Dynare. I am working through some early RBC models. I am working through the rbc_cooley.mod posted J. Fernandez-Villaverde on the Dynare website. When I compare my standard deviation of investment to the one that Cooley and Prescott report in their book, mine is much lower. The std. dev. of investment is also much lower than the std. dev.'s for both output and consumption which seems counter intuitive. Am I missing something here?
Thanks.
rbc_cooley.mod (1.8 KB)