Dynare forums

Hi everybody,

I am estimating a RBC model with Bayesian techniques. I calibrate some parameters and estimate other. There are also some parameters whose expressions are functions of both calibrated and estimated parameters (derived from the steady state of the model). After running the complete file, I noticed in the workspace that these last parameters were not re-calculated after the estimation procedure. Is it possible?

I'll give you an example:

alpha=0.68;
r=0.14;
yk=r/(1-alpha); %=0.4375

Then alpha is estimated and the posterior mean is, let's say, 0.6 (which would imply yk=0.35) but in the workspace there is still yk=0.4375.

Is there a way to make DYNARE re-calculate these parameters taking into account the estimated parameters?

Thank you

Alice

Dear Alice, This is not surprising... You have to explicitly update thses parameters. This can be done in the steadystate file. If you search on this forum you will find examples I posted years ago decribing how to do this...

Best,
Stéphane.

Ok thank you.

Alice