Hi,
I am running estimations on a NK model with non-zero steady state inflation, ascari-ropele (2007) typy. The model is loglinearised and I use Euro Area data for now (please see the attached files). My problem is that the estimated values are out of what I expected and also what the literature says. The parameter sigma (inverse of intertemporal elasticity) as well as the parameter for habit formation (h) are too low, eta (inverse of the elasticity of labour supply) is too high. I also have some issues with the TR parameter phi_y. Can someone help me please? (I attach the code and data files)
Or would it be preferable that instead of structural parameters, I estimate composed parameters of the phillips curve, xi_f, xi_b, kappa …?
And my last question: why is dynare running the same estimation three times? (please see the attached .log saved as text file)