Indeterminacy in Lubik JME
Posted: Thu Jul 14, 2011 5:02 am
Hi people, I'm trying to replicate small open DSGE model in Lubik and Schorfheide 2007. After I've done this work I started to doubt that the economy might have been driven by sun spot shocks before some period. I'm aware that threshold for determinacy and indeterminacy region can depend on the response to the nominal exchange rate movement. Does anyone know how to implement estimation under indeterminacy region of parameter space? Or does anyone have mod file of Lubik and Schorfheide (2004) Testing for indeterminacy? I've been looking for some threads on this topic but I couldn't find it.
Can anyone help me?
Thanks in advance.
Can anyone help me?
Thanks in advance.