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Collinearity problem

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Collinearity problem

Postby costa » Tue Nov 10, 2015 7:20 pm

Hi all,

I´m trying to run a simple NK model with government spending shocks, but I´m having collinearity problems. If someone could take a look at the code. Thanks in advance.
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costa
 
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Re: Collinearity problem

Postby jpfeifer » Tue Nov 10, 2015 7:54 pm

Is mcr really just -mu? And why is
Code: Select all
y = y + ybar;

ybar need to be 0 for this to hold.
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Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
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