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SOE Model with Current Account Dynamics

PostPosted: Fri Sep 12, 2014 2:38 pm
by csel11
Hi

Can anyone help with Dynare code modelling current account dynamics in a small open economy. Something along the lines of Bergin (2006) and Ferrero, Gertler and Svensson (2010), but in a small open economy setting.

Thanks

Re: SOE Model with Current Account Dynamics

PostPosted: Tue Sep 30, 2014 12:48 pm
by happy12
First, from what I understand, for this approach to be viable, the simulation horizon needs to be big enough for the zero terminal condition hypothesis to be verified?