A question about Carlstrom and Fuerst 1997 model

[JX2016]

I downloaded the dynare code from Ambrogio's webpage

I try to replicate the model myself but I have problems with the calibration.

My question is, how do they determine the initial value of omegab =0.603892??


I will appreciate it a lot if someone can help me with this simple question!

[jpfeifer]

It is determined so that f=0.39.

Code: Select all

mu       = 0.25;   
S        = 0.207; 
M        = -.5*S^2; 
omegab  = 0.603892;
PHI     = normcdf((log(omegab)-M)/S);
phi     = normpdf((log(omegab)-M)/S) / (omegab*S);
g       = normcdf((log(omegab)-M)/S - S) - PHI*mu + (1-PHI)*omegab;
f       = 1-mu*PHI- g;