Sticky Information Models in Dynare

Fabio Verona and Maik Wolters

Computational Economics, 2014, vol. 43, issue 3, 357-370

Abstract: Macroeconomic models with sticky information include an infinite number of lagged expectations. Several authors have developed specialized solutions algorithms to solve these models under rational expectations. We demonstrate that it is also possible to implement this class of models in Dynare—a widely used software package for solving dynamic stochastic general equilibrium (DSGE) models. Using the Dynare macro language one can easily construct and change the required large number of lagged expectation terms. We assess the accuracy of simulations run with different truncation points for the lagged expectations terms and find that the solution is reasonably precise even for moderate truncation points. Copyright Springer Science+Business Media New York 2014

Keywords: Sticky information; Dynare; Macro-processor; Lagged expectations (search for similar items in EconPapers)
Date: 2014
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Related works:
Working Paper: Sticky Information Models in Dynare (2013)
Working Paper: Sticky Information Models in Dynare (2013)
Working Paper: Sticky information models in Dynare (2013)
Working Paper: Sticky information models in Dynare (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:compec:v:43:y:2014:i:3:p:357-370

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DOI: 10.1007/s10614-013-9379-6

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