Hi everyone,
I am trying to replicate the model in Gertler Gilchirst Natallucci (2007), basically a small open economy model with financial accelerator. I solved and log-linearized the model around ss. My problem is that althouhg the Blanchard-Kahn condition is satisfied, the some impulse response functions of the variables do not converge to the initial point after an temporary exogenous shock , rather converge to a new point. Does anyone have an explanation for this? Thank you very much in advance.
Dynare forums
Forums for asking questions, posting comments and uploading examples related to Dynare
Convergence Problem
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
5 posts
• Page 1 of 1
Convergence Problem
by haroun » Fri Jan 22, 2010 2:18 pm
- haroun
- Posts: 8
- Joined: Thu Dec 13, 2007 2:03 pm
Re: Convergence Problem
by SébastienVillemot » Thu Feb 04, 2010 10:41 am
Hi
You probably have unit roots in your model, or eigenvalues very close to 1. Please check the list of eigenvalues.
Best
You probably have unit roots in your model, or eigenvalues very close to 1. Please check the list of eigenvalues.
Best
Sébastien Villemot
Economist at OFCE – Sciences Po
Economist at OFCE – Sciences Po
- SébastienVillemot
- Posts: 706
- Joined: Fri Dec 07, 2007 2:29 pm
- Location: Paris, France
Re: Convergence Problem
by haroun » Thu Feb 11, 2010 7:33 am
Hi,
Thanks for your answer. I have solved the problem by increasing the elasticity of risk premium w.r.t. net foreign asset.
Best,
h.
Thanks for your answer. I have solved the problem by increasing the elasticity of risk premium w.r.t. net foreign asset.
Best,
h.
- haroun
- Posts: 8
- Joined: Thu Dec 13, 2007 2:03 pm
Re: Convergence Problem
by condilac » Thu Jan 27, 2011 10:50 am
I have problems with that model as well , can you share the code with me? It would help me a lot.
my email is imedilive@mail.ru
Thank you in advance
my email is imedilive@mail.ru
Thank you in advance
- condilac
- Posts: 5
- Joined: Tue Jan 25, 2011 5:28 pm
Re: Convergence Problem
by condilac » Thu Jan 27, 2011 10:50 am
I have problems with that model as well , can you share the code with me? It would help me a lot.
my email is imedilive@mail.ru
Thank you in advance
my email is imedilive@mail.ru
Thank you in advance
- condilac
- Posts: 5
- Joined: Tue Jan 25, 2011 5:28 pm
5 posts
• Page 1 of 1
Who is online
Users browsing this forum: Google [Bot] and 8 guests