Taylor Rule, steady state variables

This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location where you will have to reset your password.
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.

Taylor Rule, steady state variables

Postby MCJM » Tue May 24, 2016 4:35 pm

Hi,

I would like to replicate a Taylor Rule in Dynare where the GDP is at steady state. I have found in p.15 of "Dynare Reference Manual" for version 4.4.3. However, I don't know how to use this command. Could anyone help me please?

The form of the equation is as follows: int = r -theta*(pi-[Pi at steady state])-rho*(ln(Y)-ln([Y at steady state]))-[Pi at steady state]

Here it is what the Reference Manual says about this topic but it is not clear how to apply it:

STEADY_STATE (MODEL_EXPRESSION) [Operator]
This operator is used to take the value of the enclosed expression at the steady state. A typical usage is in the Taylor rule, where you may want to use the value of GDP at steady state to compute the output gap.


Thank you in advance!
MCJM
 
Posts: 2
Joined: Tue May 24, 2016 4:15 pm

Re: Taylor Rule, steady state variables

Postby jpfeifer » Sat May 28, 2016 6:05 am

That would be
Code: Select all
int = r -theta*(pi-steady_state(pi))-rho*(ln(Y)-ln(steady_state(y)))-steady_state(pi)

Please keep in mind http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=5860
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany


Return to Dynare User Guide

Who is online

Users browsing this forum: No registered users and 0 guests