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Smet and Wouters with Indeterminacy

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Smet and Wouters with Indeterminacy

Postby robpancr » Thu Sep 29, 2016 2:51 pm

Hi,
we all know that SW(2007) rules out indeterminacy by construction.

Is there any Dynare code that allows to estimate literally a SW model but that account for indeterminacy?
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Re: Smet and Wouters with Indeterminacy

Postby jpfeifer » Fri Oct 07, 2016 4:06 pm

You could use the code of Bianchi/Niccolo to handle this. I hope to have an example online next week.
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Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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