Re: Schmitt-Grohe and Uribe 2004b replicate in dynare
Posted: Mon Jun 27, 2016 11:23 am
They do not match because of the difference in timing conventions. You have that
SGU treat A as an exogenous state and present the response to A. Dynare splits A into two states:
and
Because of this, you are looking at different objects.
- Code: Select all
A=rho*A(-1)+epsilon
SGU treat A as an exogenous state and present the response to A. Dynare splits A into two states:
- Code: Select all
A(-1)
and
- Code: Select all
epsilon
Because of this, you are looking at different objects.