analysing models with indeterminacy
Posted: Thu Aug 08, 2013 9:55 amHey everyone,
From what I understand of the way Dynare functions, it seems to me that it is not possible to work with models where the Blanchard-Kahn conditions are not met.
However, I was wondering whether it would be possible to carry out the type of analysis presented in Lubik and Schorfheide's (2004) "Testing for Indeterminacy: An Application to US Monetary Policy," which explicitly deals with the case of indeterminacy? If not, is it something that might be implemented in future versions of Dynare?
Thank you very much!
Alexis
From what I understand of the way Dynare functions, it seems to me that it is not possible to work with models where the Blanchard-Kahn conditions are not met.
However, I was wondering whether it would be possible to carry out the type of analysis presented in Lubik and Schorfheide's (2004) "Testing for Indeterminacy: An Application to US Monetary Policy," which explicitly deals with the case of indeterminacy? If not, is it something that might be implemented in future versions of Dynare?
Thank you very much!
Alexis