Hi,
I am working on a model where I loglinearized the equations. One of the equations have both steady state and log linearized prices ('P'). I am in the process of coding but I don't know what value I should assign for prices.
Can anyone please assist me?
Thanks.
Dynare forums
Forums for asking questions, posting comments and uploading examples related to Dynare
Steady-state value for prices
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.
3 posts
• Page 1 of 1
Steady-state value for prices
by Carol » Thu Nov 01, 2012 11:29 am
- Carol
- Posts: 29
- Joined: Tue Nov 29, 2011 11:19 pm
Re: Steady-state value for prices
by jpfeifer » Sun Nov 04, 2012 8:43 am
If you are talking about a New Keynesian model, you have to stationarize everything by getting rid of prices. Express everything either in relative prices or inflation rates.
- jpfeifer
- Posts: 6940
- Joined: Sun Feb 21, 2010 4:02 pm
- Location: Cologne, Germany
Re: Steady-state value for prices
by Carol » Sun Nov 04, 2012 6:19 pm
Thanks for this information Jpfeifer.
- Carol
- Posts: 29
- Joined: Tue Nov 29, 2011 11:19 pm
3 posts
• Page 1 of 1
Who is online
Users browsing this forum: Google [Bot] and 5 guests