From 5b22a714cf4888dcabb19065c1f05510b2b6a5bd Mon Sep 17 00:00:00 2001 From: Krasimira Kirilova Date: Thu, 20 Jun 2024 09:34:28 +0000 Subject: [PATCH 1/2] Update initial guess default value from 1.1 to 0.95. --- docs/guide/the_yaml.rst | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/docs/guide/the_yaml.rst b/docs/guide/the_yaml.rst index 2c8be87..4d38c1c 100644 --- a/docs/guide/the_yaml.rst +++ b/docs/guide/the_yaml.rst @@ -84,10 +84,10 @@ Note that you need one equation for each variable defined in ``variables``. y: .33 pi: 1.02^.25 - init_guesses: # the default initial guess is always 1.1 + init_guesses: # the default initial guess for values not specified here is always 0.95 chi: 6 -Finally, the ``steady_state`` block allows to fix parameters and, if desired, some steady state values, and provide initial guesses for others. Note that the default initial guess for any variable/parameter not specified here will be ``1.1``. +Finally, the ``steady_state`` block allows to fix parameters and, if desired, some steady state values, and provide initial guesses for others. Note that the default initial guess for any variable/parameter not specified here will be ``0.95``. YAML: heterogeneous agent models From 5b5190353edb450507a5d493d9802e1b454d146e Mon Sep 17 00:00:00 2001 From: Krasimira Kirilova Date: Thu, 20 Jun 2024 09:35:04 +0000 Subject: [PATCH 2/2] Update yaml code blocks to match `nk.yml` file latest version. --- docs/guide/the_yaml.rst | 18 +++++++++--------- 1 file changed, 9 insertions(+), 9 deletions(-) diff --git a/docs/guide/the_yaml.rst b/docs/guide/the_yaml.rst index 4d38c1c..a12a6f0 100644 --- a/docs/guide/the_yaml.rst +++ b/docs/guide/the_yaml.rst @@ -33,14 +33,14 @@ The GitHub version of the YAML file for the small scale NK model can be found `h .. code-block:: yaml - variables: [y, c, pi, r, rn, beta, w, chi] + variables: [y, c, pi, r, rn, beta, w] shocks: [e_beta] Note that it is not necessary to define shocks. You can also simply set the initial values of any (exogenous) state. .. code-block:: yaml - parameters: [ theta, psi, phi_pi, phi_y, rho, h, eta, rho_beta, chi ] + parameters: [ theta, psi, phi_pi, phi_y, rho, h, sigma_l, rho_beta, chi ] Use the ``parameters`` block to define any *parameters*. Parameters are treated the same as variables, but they are time invariant. During steady state search they are treated exactly equally. For this reason their values are provided in the ``steady_state`` block. @@ -54,7 +54,7 @@ The second block (``definitions``) defines general definitions and imports, whic .. code-block:: yaml equations: - ~ w = chi*(c - h*cLag)*y**eta # labor supply + ~ w = chi*(c - h*cLag)*y**sigma_l # labor supply ~ 1 = r*betaPrime*(c - h*cLag)/(cPrime - h*c)/piPrime # euler equation ~ psi*(pi/piSS - 1)*pi/piSS = (1-theta) + theta*w + psi*betaPrime*(c-h*cLag)/(cPrime-h*c)*(piPrime/piSS - 1)*piPrime/piSS*yPrime/y # Phillips curve ~ c = (1-psi*(pi/piSS - 1)**2/2)*y # market clearing @@ -71,16 +71,16 @@ Note that you need one equation for each variable defined in ``variables``. fixed_values: # parameters theta: 6. # demand elasticity - psi: 96 # price adjustment costs - phi_pi: 4 # monetary policy rule coefficient #1 - phi_y: 1.5 # monetary policy rule coefficient #2 + psi: 60 # price adjustment costs + phi_pi: 1.5 # monetary policy rule coefficient #1 + phi_y: 0.1 # monetary policy rule coefficient #2 rho: .8 # interest rate smoothing - h: .44 # habit formation - eta: .33 # inverse Frisch elasticity + h: .74 # habit formation + sigma_l: 2 # inverse Frisch elasticity rho_beta: .9 # autocorrelation of discount factor shock # steady state values - beta: 0.9984 + beta: 0.995 y: .33 pi: 1.02^.25