linear_parameters_LM_26_0: Obtain linear parameters of model by Lubik and Marzo (2007)

In bfunovits/indeterminateR: Evaluates the Existence and Uniqueness Properties of LRE Models

Description

This function returns a verison of the New Keynesian monetary model with a monetary rule which is similar to the one in Lubik Marzo (2007), see the vignette for more detail. In particular, it takes the deep parameters as input and returns the matrices occurring in Sims' canonical form.

Usage

linear_parameters_LM_26_0(s = 1, b = 0.99, k = 0.5, f_y = 0.8,
  f_p = 0.7, f_r = 1.2)

Arguments

s	Elasticity of intertemporal substitution and the inverse of the coefficient of relative risk aversion.
b	Subjective time preference rate
k	Inverse of elasticity of aggregate supply with respect to inflation
f_y	Measures the elasticity of interest rate response w.r.t. output.
f_p	Measures the elasticity of interest rate response w.r.t. inflation.
f_r	Interest smoothing coefficient (page 27 in LM07)

Value

List object containing the parameter matrices

Γ_0, Γ_1, Ψ, Π

.

bfunovits/indeterminateR documentation built on May 28, 2019, 7:10 p.m.