Hi, many thanks for the info. I have this book, so I will definitely check it out. My problem, however, was to understand the term ‘calibration targets’ which is not defined in the book. Not sure if it is a standard term in DSGE modeling, but I came across it while reading this paper. The authors, for example, estimate the regression model, log z_t = \rho log z_{t-1} + \epsilon_t separately outside the DSGE model, and use the estimated parameter \hat{\rho} to calibrate the persistent parameter in the TFP (shock) equation in the DSGE model. They refer to \hat{\rho} as a calibration target, and they have a table for such targets.

Also on Prof. Pfeifer’s github, he uses the term ‘calibration targets’ in these sentences, “…It demonstrates how in a linearized model a steady_state-file can be used to set the deep parameters of the model to satisfy calibration targets on the non-linear model. The steady_state-file takes the calibration targets and calls a numerical solver on some of the nonlinear steady state equations to get the corresponding parameters that make the steady state satisfy the targets.”

While I don’t quite yet fully understand prof. Pfeifer’s statements here, is he talking about something like \hat{\rho} when he uses the term “calibration target”?