Equation coefficients depending on parameters to estimate

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Equation coefficients depending on parameters to estimate

Postby fpalomi » Fri May 13, 2011 8:19 pm

I'm trying to estimate a model where some of the coefficients in the model equations depend on the estimated parameters. For instance,
y=a+b*x,
where a and b are complicated functions of the parameters I want to estimate.
The coefficients are computed using a matlab function. I have tried to add the changing coefficients in the model section of the mod file using #, however, it does not recognize the matlab function and throws an error. Is there a way I can do this in Dynare?

Thanks
fpalomi
 
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Re: Equation coefficients depending on parameters to estimat

Postby SébastienVillemot » Tue May 24, 2011 10:49 am

Use external functions, available since Dynare 4.2:

http://www.dynare.org/DynareWiki/ExternalFunctions
Sébastien Villemot
Economist at OFCE – Sciences Po
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