Document treatment of parameters in steady state files
parent
771113f8b9
commit
323bfaf353
|
@ -2859,6 +2859,20 @@ of a heavier programming burden and a lesser efficiency.
|
||||||
|
|
||||||
@end itemize
|
@end itemize
|
||||||
|
|
||||||
|
Note that both files allow to update parameters in each call of
|
||||||
|
the function. This allows for example to calibrate a model to a labor
|
||||||
|
supply of 0.2 in steady state by setting the labor disutility parameter
|
||||||
|
to a corresponding value (see @file{NK_baseline_steadystate.m} in the
|
||||||
|
@file{examples} directory). They can also be used in estimation
|
||||||
|
where some parameter may be a function of an estimated parameter
|
||||||
|
and needs to be updated for every parameter draw. For example, one might
|
||||||
|
want to set the capital utilization cost parameter as a function
|
||||||
|
of the discount rate to ensure that capacity utilization is 1 in steady
|
||||||
|
state. Treating both parameters as independent or not updating one as
|
||||||
|
a function of the other would lead to wrong results. But this also means
|
||||||
|
that care is required. Do not accidentally overwrite your parameters
|
||||||
|
with new values as it will lead to wrong results.
|
||||||
|
|
||||||
@anchor{steady_state_model}
|
@anchor{steady_state_model}
|
||||||
@deffn Block steady_state_model ;
|
@deffn Block steady_state_model ;
|
||||||
|
|
||||||
|
|
Loading…
Reference in New Issue