Replication of NK_baseline.mod for Bayesian estimation

[Petryk]

Dear Dynare users,

Does anybody have a working version of NK_baseline.mod for Bayesian estimation? I was trying to replicate it using simulated series but there were some issues with parameter 'alppha' in the posterior mode check. I did not observe these issues when I use simulated series in other examples.

Thank you!

[costa]

Some time ago I wrote this code. Hope it helps.

[jpfeifer]

@Petryk: Could you please post or send the problematic files so I can take a look at them.

[Petryk]

Dear Dynare experts,

Attached is a working version of NK_baseline.mod modified to replicate the estimation part in Fernández-Villaverde (2010).

While the code runs it shows strange mode checks for ‘alppha’ and some other parameters.

I suspect the problem in the definitions of shocks on line 201-205 but not sure how to fix it.

Also, the definition of shocks in focs has been changed in the original NK_baseline.mod from Fernández-Villaverde and Rubio-Ramírez (2006). To give one example, consider equation (4) in NK_baseline with
‘mu_z(+1)’
compared to ‘z(t)/z(t+1)’ in Fernández-Villaverde and Rubio-Ramírez (2006).

Thank you in advance for help!