i tried to replicate the Dynare simulation of the Energy Price Shocks and the Macroeconomy: The Role of Consumer Durables-Model of Dhawan and Jeske and so far i finished the code and the model is running in Dynare. As i’m trying to replicate the different simulation results in Table 4 of the paper, i’m struggling to replicate (or to be precise get values close to their simulation) their percent standard deviation. I used their parameterization and tried to change the equations to the logarithm’s of the variables as i have contacted one of the authors and he said they used the standard deviation of the log-levels. Maybe i did a mistake writing the code or just interpret the results incorrect.
The mod-file corresponds to the DEA model in the table and for example i get 0.23 for the Hours variable instead of 0.72 with botch shocks present. I know that they don’t have to be totally equal as it’s stochastic, but it feels like my results are too different to be correct.
I have attached my mod-file as well as the paper.
Maybe one of you sees a mistake in my code.
dhawan_jeske08_Energy_Price_Shocks_and_the_Macroeconomy_The_Role_of_Consumer_Durables.pdf (868.8 KB)
Test3.mod (8.8 KB)