Posterior IRF of a system growing with technology

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Posterior IRF of a system growing with technology

Postby wanghao19820707 » Sun Jan 20, 2013 7:30 am

Dear All,
I want to get Posterior IRF of a system growing with technology.In the equation system,output,investment is trasformed to stationary variable according to dynare request.But I want to get Posterior IRF for output,investment which grows with technology(that are,real output and investment).what should I do ?
Attached file is my mod file and data file.

Thank you!
Attachments
dydicq.m
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rbc_5.mod
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wanghao19820707
 
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Re: Posterior IRF of a system growing with technology

Postby jpfeifer » Mon Jan 28, 2013 5:39 pm

If you estimated the model in first differences, you have to integrate the series up (i.e. add up the changes) the variables after a permanent technology shock. You have to program this yourself. For example, let X_t be the trend in labor-augmenting technology and define y_t=Y_t/X_t. Then obviously Y_t=y_t*X_t. From the estimated model, you have y_t (the detrended one) and the response of Delta X_t. Starting with X_0=1, it is easy to back out the IRF of y_t.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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Re: Posterior IRF of a system growing with technology

Postby wanghao19820707 » Tue Jan 29, 2013 1:58 am

Dear jpfeifer:
Thank you very much! I will try
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Posts: 19
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