Welfare basic NK standard deviations of infl. and output gap

Hello there,

I’m trying to replicate the welfare loss results in Gali 2008 book, page 83, Table 4.1. So what I’m basically doing is using a linearized model with the benchmark calibration and simulate series and then simply take the standard deviations of both inflation and output gap of the simulated series. But especially the inflation standard deviation frоm the first column in the table (2.60) is nowhere near to what I get. Please find attached the dynare file, it’s just the very basic NK model with series simulation.

So is my procedure for finding the standard deviations (and subsequently the welfare loss value based on the 2nd order approximation of the utility fuction) correct?

NKmodelsmall.mod (1.16 KB)

did you look at github.com/JohannesPfeifer/DSGE_mod/blob/master/Gali_2015/Gali_2015_chapter_4.mod