normal distribution function in the closed-form

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normal distribution function in the closed-form

Postby winifred » Wed Jan 28, 2009 6:21 pm

If I have one equation which includes normal distribution and other equations are still the same such as

model;

y = a(k^alpha)(l^(1-alpha))
:
c = y-i
:
:
B =P*(1-normdist(x,mean_j,stdev_j,true)... ( <----a rough example)
:
:
end;

suppose j includes some endogenous variables, such as, y.
Can dynare deal with the normal distribution equation,
or how should I do to alter a proper codes to fit it in dynare.

Thank you.
winifred
 
Posts: 12
Joined: Tue Oct 21, 2008 10:02 am

Re: normal distribution function in the closed-form

Postby SébastienVillemot » Tue Feb 17, 2009 9:11 am

Hi,

For the PDF of the normal distribution, you need to write it explicitely by hand.

For the CDF, you have a primitive in Dynare 4, which has the form "normcdf(x,mean,sigma)". Note that "normcdf(x)" is an alias for "normcdf(x,0,1)".

Best,

Sébastien
Sébastien Villemot
Economist at OFCE – Sciences Po
SébastienVillemot
 
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