Estimation problem

[matte]

Dear,

I try to do a robustness check when estimating Taylor rule with a reaction to 1)current inflation, 2)expected inflation. Therefore, the Taylor in Dynare code look
1)Rhat = (1-rR)*rq*qinf + (1-rR)*rpi*pihat+ry*(1-rR)*Yhat+rR*Rhat(-1)+eRhat; for current inflation
2)Rhat = (1-rR)*rq*qinf + (1-rR)*rpi*pihat(+1)+ry*(1-rR)*Yhat+rR*Rhat(-1)+eRhat; for expected inflation

Although I get estimated the model with a reaction to current inflation, I get an error when estimating the model with a reaction to expected inflation. Could you help me on this, please?
I enclose my Dynare code and data used for the estimation.

Many many thanks in advance,
M

[jpfeifer]

Could you specify the error message, please.

[matte]

ok

[SébastienVillemot]

Your file runs well on my machine with Dynare 4.1.2.

Please give more details about your Dynare installation and the problem you encounter.

Best,

[matte]

Hi!
The code runs on my machine as well but if I replace the following line in the code:

Rhat = (1-rR)*rq*qinf + (1-rR)*rpi*pihat+ry*(1-rR)*Yhat+rR*Rhat(-1)+eRhat;

to the following:

Rhat = (1-rR)*rq*qinf + (1-rR)*rpi*pihat(+1)+ry*(1-rR)*Yhat+rR*Rhat(-1)+eRhat;

it does not run.

Many thanks!
M

[SébastienVillemot]

Which error do you get ?