Dynare forums
Forums for asking questions, posting comments and uploading examples related to Dynare
strange condition in Lubik and Schorfheide (2007)
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
2 posts
• Page 1 of 1
strange condition in Lubik and Schorfheide (2007)
by earsmall » Tue Jun 30, 2015 8:43 am
Hi, I have been trying to reproduce Lubik and Schorfheide's 2007 paper.
Last edited by earsmall on Mon Sep 14, 2015 8:23 pm, edited 1 time in total.
- earsmall
- Posts: 40
- Joined: Mon Jun 15, 2015 3:44 pm
Re: strange condition in Lubik and Schorfheide (2007)
by sfking » Wed Jul 01, 2015 9:26 am
The home country's CPI is defined as
P_t=(1-alpha)*P_ht+alpha*P_ft
=(1-alpha)*(P_ht-P_ft)+P_ft
=(1-alpha)*q_t+P_ft (1)
because GM2005 is small open economy model, then we have
P_ft=e_t+Pstar_t (2)
Substituting (2) into (1), and taking the first order differnce of (1)
Pi_t=(1-alpha)*Dq_t+De_t+Pistar_t
Woule you like to post your mod file? thank you
P_t=(1-alpha)*P_ht+alpha*P_ft
=(1-alpha)*(P_ht-P_ft)+P_ft
=(1-alpha)*q_t+P_ft (1)
because GM2005 is small open economy model, then we have
P_ft=e_t+Pstar_t (2)
Substituting (2) into (1), and taking the first order differnce of (1)
Pi_t=(1-alpha)*Dq_t+De_t+Pistar_t
Woule you like to post your mod file? thank you
- sfking
- Posts: 6
- Joined: Thu Nov 13, 2014 7:04 am
2 posts
• Page 1 of 1
Who is online
Users browsing this forum: No registered users and 3 guests