Dear Johannes and Dynare Community, I am a little puzzled by the variance decomposition generated by the Smets & Wouters 2007 mod file provided on Johannes’ github page here , and the results exhibited in the original paper. For example, the conditional variance decomposition at 10 quarters generate…

The answer is contained in [image] Smets/Wouters (2007) in Dynare 4.2.5 Replication Attempts Attached is a version of the Smets/Wouter (2007) model for Dynare 4.2.5. Due to a bug in Dynare 4.2.5 you need to replace the file matlab\distributions\inverse_gamma_specification.…

Variance Decomposition in SW2007 (code vs paper)

Estimation ML/Bayesian estimation

jpfeifer April 13, 2023, 7:20pm 4

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I should update the repository to use the correct mode-file.