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Smet and Wouters with Indeterminacy

PostPosted: Thu Sep 29, 2016 2:51 pm
by robpancr
Hi,
we all know that SW(2007) rules out indeterminacy by construction.

Is there any Dynare code that allows to estimate literally a SW model but that account for indeterminacy?

Re: Smet and Wouters with Indeterminacy

PostPosted: Fri Oct 07, 2016 4:06 pm
by jpfeifer
You could use the code of Bianchi/Niccolo to handle this. I hope to have an example online next week.