I am studying the manuscripts of Uribe & Schmitt-Grohe on this site columbia.edu/~mu2166/book/.
I wrote the correct code for chapter 4, attached in this message. But I would like to estimate the parameters by bayesian inference. I have read the notes of Pfeifer (and I really recommended it), but he suggested put the model in intensive form, first. You can verify on page 17. I would like to know if someone have done this, and, if not, I would like to know how I have to do this intensive form transformation and how the best way to have bayesian inference on my parameters.
PS: I think the best parameters to estimate are db, omega, phi, psi, rho and eta. But I would like more suggestions.
Thank you for all,
Uribe_chapter4_std.mod (2.75 KB)