Very basic RBC
Posted:
Mon Oct 06, 2014 8:26 pmby matrix99
Hi guys, I'm trying to learn dynare in these days for my master thesis, so i started with a very simple RBC following the paper attached (BasicRBC). Despite this, it appears i do something wrong in the initval section, because i don't get zero steadystate values. Any suggestion for a beginner? Thank you very much!
Re: Very basic RBC
Posted:
Tue Oct 07, 2014 8:24 amby jpfeifer
1. Your timing is wrong, see the manual. Given your beginning of period stock convention, you must use
- Code: Select all
predetermined_variables k;
2. There is a log missing in the RHS of your exogenous law of motion. It must be
- Code: Select all
log(z)=rho*log(z(-1)) + e;
Attached is the running file.