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DSGE linear

PostPosted: Tue Mar 05, 2013 6:13 pm
by tophukg
Hello everybody. I'm a VIetnamese student and I am trying to have DSGE line like paper "Monetary policy and the exchange rate: Evaluation of VAR models"Jarkko P. Jääskelä*, David Jennings.Frist, I think it has similar approach as Lubik 2007. So I try to add the value of parameter from the table of paper Monetary policy and the exchange rate to functions. But, nothing happened. I can not find the error.
Second, I try to estimate the parameter to have the IRF of my country. But I can find the way to do it, the examples of dynare is not run, I found the code of lubik2007 file , it has the estimation, dynare run IRF but it do not estimate. This way is wrong ? Or the data is broken?
Can you help me, I am very bad at english, forgive any misspelling, please !!

Re: DSGE linear

PostPosted: Wed Mar 06, 2013 8:18 pm
by donihue
As a first step, you need to give initial values to the parameters kappa, rhox, rhoa, alpha, theta, phit, rhosa, rhosx, rhosr,alphaspi, alphasx, sigmaa, omega because without them many equations have NaN values for the residuals.

However, the real problem is that the model you are interested in is actually based on the Gali-Monacelli model of 2005, not on the Lubik model of 2007. If you go to
http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=1612&p=4041&hilit=gali+monacelli#p4041
you will find a version of that model which should help you.

Regards
Donihue