Perturbation theory
Posted: Wed Oct 29, 2014 3:51 pm
Hi I wonder how perturbation theory should affect the following:
I have a mod file in which I have written variables in two types are both present in the mod file.
type1.A variable that has been logged. And thus have equation of the form
exp(a)=exp(b)/exp(c)
type2. A variable that has not been logged. And thus have equation of the form
d=exp(e)/exp(f)
When I run dynare, I find that the first moment[mean] of some of the variables of type2 are NaN. I wonder if it is perturbation theory at work and I should have consistently turned all variables to type1.
The second observation is that , despite dynare not being able to calculate first moment, second moments are calculated and IRFs are successfully plotted in dynare.
I have a mod file in which I have written variables in two types are both present in the mod file.
type1.A variable that has been logged. And thus have equation of the form
exp(a)=exp(b)/exp(c)
type2. A variable that has not been logged. And thus have equation of the form
d=exp(e)/exp(f)
When I run dynare, I find that the first moment[mean] of some of the variables of type2 are NaN. I wonder if it is perturbation theory at work and I should have consistently turned all variables to type1.
The second observation is that , despite dynare not being able to calculate first moment, second moments are calculated and IRFs are successfully plotted in dynare.