#------------------------------------------------------------------------------
# File: run.hlw.estimation.R
#
# Description: Runs the three stages of the HLW estimation using country-specific
# inputs and returns output from each stage.
#------------------------------------------------------------------------------#
run.hlw.estimation <- function(log.output, inflation, real.interest.rate, nominal.interest.rate,
a3.constraint = NA, b2.constraint = NA, run.se = TRUE,
g.pot.start.index = g.pot.start.index, niter = niter) {
message("Running HLW ESTIMATION...")
# Running the stage 1 model
out.stage1 <- rstar.stage1(log.output,
inflation,
b2.constraint,
g.pot.start.index)
# Median unbiased estimate of lambda_g
lambda.g <- median.unbiased.estimator.stage1(out.stage1$potential.smoothed)
# Running the stage 2 model
out.stage2 <- rstar.stage2(log.output,
inflation,
real.interest.rate,
lambda.g,
a3.constraint,
b2.constraint,
g.pot.start.index)
# Median unbiased estimate of lambda_z
lambda.z <- median.unbiased.estimator.stage2(out.stage2$y, out.stage2$x)
# Running the stage 3 model
out.stage3 <- rstar.stage3(log.output,
inflation,
real.interest.rate,
nominal.interest.rate,
lambda.g,
lambda.z,
a3.constraint,
b2.constraint,
run.se,
g.pot.start.index,
niter = niter)
return(list(out.stage1=out.stage1,out.stage2=out.stage2,out.stage3=out.stage3,
lambda.g=lambda.g,lambda.z=lambda.z))
}
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