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dynamicModel.mod
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dynamicModel.mod
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// Solve for aggregate dynamics using DYNARE
//
// Thomas Winberry, February 14th, 2018
//----------------------------------------------------------------
// Load parameters
//----------------------------------------------------------------
@#include "parameters.mod"
//----------------------------------------------------------------
// Define variables
//----------------------------------------------------------------
@#include "variables.mod"
//----------------------------------------------------------------
// Model equations
//----------------------------------------------------------------
model;
@#include "equations.mod"
end;
varobs logAggregateOutput logAggregateInvestment;
//----------------------------------------------------------------
// Set options
//----------------------------------------------------------------
// Specify shock process (=1 to include shock; =0 to not include shock)
shocks;
var aggregateTFPShock = 1;
var aggregateQShock = 1;
end;
// Do not check steady state (un-comment for speed once you know steady state is computed correctly)
options_.steadystate.nocheck = 1;
// Check steady state (un-comment to check whether steady state from .m file satisfies equations.mod)
//steady;
//resid(1)
// Check dynamic regularity conditions (comment out for speed)
//check;
//model_diagnostics;
//model_info;
// Simulate
stoch_simul(irf=0, order=1);