RBC MODEL - Chapter 3 User Guide - Different solutions
Posted: Tue Nov 13, 2007 1:53 pmHello,
I’m trying to replicate the RBC model with monopolistic competition that is anaalyzed in the User Guide – Public Beta Version (chapter 3.2) (I’m using Dynare version 3.065).
I have noted that if we change the method that is used for compute the steady state (command: steady(solve_algo = …)), the simulation leads to a two different result.
In particular, when we use steady(solve_algo=0), steady(solve_algo=1) or steady(solve_algo=2), the steady state results:
c 0.707986
i 0.184098
k 8.00426
l 0.302733
r 0.033101
w 1.7769
y 0.892084
y_l 2.94677
z 1.27447e-056
whereas if we use steady(solve_algo=3), the steady state results:
c 0.76
i 0
k 9
l 0.3
r 0.03
w 2.07
y 0
y_l 0
z 0
Moreover, as you can see from the figures, also the Impulse Response Functions (IRFs) are differents.
My questions are: Am I miss something? Where is the error in my simulation? Which is the right solution?
Thank you very much.
Fabio
I’m trying to replicate the RBC model with monopolistic competition that is anaalyzed in the User Guide – Public Beta Version (chapter 3.2) (I’m using Dynare version 3.065).
I have noted that if we change the method that is used for compute the steady state (command: steady(solve_algo = …)), the simulation leads to a two different result.
In particular, when we use steady(solve_algo=0), steady(solve_algo=1) or steady(solve_algo=2), the steady state results:
c 0.707986
i 0.184098
k 8.00426
l 0.302733
r 0.033101
w 1.7769
y 0.892084
y_l 2.94677
z 1.27447e-056
whereas if we use steady(solve_algo=3), the steady state results:
c 0.76
i 0
k 9
l 0.3
r 0.03
w 2.07
y 0
y_l 0
z 0
Moreover, as you can see from the figures, also the Impulse Response Functions (IRFs) are differents.
My questions are: Am I miss something? Where is the error in my simulation? Which is the right solution?
Thank you very much.
Fabio