- New routines for simulating semi-structural models where some equations are
specified using the polynomial adjustment costs (PAC) approach, as in
Angelini et al. (2019). The forward-looking terms of the PAC equations can
the FRB/US model (see Brayton et. al, 2014) and the ECB-BASE model (see
Angelini et al., 2019). The forward-looking terms of the PAC equations can
be computed either using a satellite VAR model, or using full
model-consistent expectations. See the `pac_model` command and the
`pac_expectation` operator.
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@@ -239,6 +240,7 @@ Dynare 4.7
- Angelini, Bokan, Christoffel, Ciccarelli and Zimic (2019): “Introducing ECB-BASE: The blueprint
of the new ECB semi-structural model for the euro area”, ECB Working Paper no. 2315
- Born and Pfeifer (2014): “Policy risk and the business cycle”, Journal of Monetary Economics, 68, 68-85.
- Brayton, Laubach and Reifschneider (2014): “The FRB/US Model: A Tool for Macroeconomic Policy Analysis,” FEDS Notes. Washington: Board of Governors of the Federal Reserve System, https://doi.org/10.17016/2380-7172.0012
- Cuba-Borda, Guerrieri and Iacoviello (2019): “Likelihood evaluation of models with occasionally binding constraints”, Journal of Applied Econometrics, 34(7), 1073-1085
- Giovannini, Pfeiffer and Ratto (2021): “Efficient and robust inference of models with occasionally binding constraints,” Working Papers 2021-03, Joint Research Centre, European Commission
- Guerrieri and Iacoviello (2015): “OccBin: A toolkit for solving dynamic models with occasionally binding constraints easily,” Journal of Monetary Economics, 70, 22–38.
