Negative Steady State in GK13

This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location where you will have to reset your password.
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.

Negative Steady State in GK13

Postby Keynesian94 » Tue Jul 18, 2017 9:56 am

Hi,
I've been adapting Gertler&Karadi 2013 (QE 1 vs 2 vs 3), but discovered that the steady state values of the model I got from the macro modelbase are negative, i.e. Yss, Lss, Kss, Css etc are all negative.
The model runs, and my adaptions also generate the expected results.
Still, to calibrate a new parameter, I wanted to look at the impact on steady state net worth over GDP (so Yss). This yields strange results of course, as Yss is negative.
Does anyone have a clue?
Thanks!
Attachments
NK_GK13_rep.mod
(27.97 KiB) Downloaded 65 times
Keynesian94
 
Posts: 5
Joined: Sat May 20, 2017 10:54 am

Re: Negative Steady State in GK13

Postby jpfeifer » Tue Jul 18, 2017 10:04 am

If you look closely, you will see that these are not the steady state of the levels, but of the log-levels. The logarithm of a positive number smaller than 1 are negative.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany

Re: Negative Steady State in GK13

Postby Keynesian94 » Tue Jul 18, 2017 11:23 am

jpfeifer wrote:If you look closely, you will see that these are not the steady state of the levels, but of the log-levels. The logarithm of a positive number smaller than 1 are negative.

Dear jpfeifer,
I had overlooked that indeed!
Thanks for your help, that'll fix the issue for me.
Keynesian94
 
Posts: 5
Joined: Sat May 20, 2017 10:54 am


Return to Dynare help

Who is online

Users browsing this forum: No registered users and 11 guests