Re: Schmitt-Grohe and Uribe 2004b replicate in dynare
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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.
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A=rho*A(-1)+epsilon
SGU treat A as an exogenous state and present the response to A. Dynare splits A into two states:
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A(-1)
and
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epsilon
Because of this, you are looking at different objects.