Dear all,
enlosed there is the .mod file for Hansen's[1985] RBC model. Unfortunately, I get counterintuitive results. All the standard deviations are smaller than expected given the set of parameters:
For consumption: 0.0048 instead of about 0.5,
For investment: 0.0183 instead of about 5.5.
Furthermore, the difference between the standard deviations of consumption and investment are pretty small. Do you have any ideas for the reasons for these results.
Many thanks for your help.
Kind regards
Peter