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  • DSGE Model Help

    Hi all,

    I am very new to Stata and looking for some help. Is it possible to create a negative interest environment and see the effects it would have? Any help is greatly appreciated.

    The Data I am using is the STATA Macro2 dataset

    constraint 1 _b[beta]=0.96


    dsge (p = {beta}*E(F.p) + {kappa}*x) ///
    (x = E(F.x) - (r - E(F.p) - g), unobserved) ///
    (i = {chi}*r + e) ///
    (r = {psi}*p + u) ///
    (F.e = {rhoe}*e, state) ///
    (F.u = {rhou}*u, state) ///
    (F.g = {rhoz}*g, state), ///
    from(psi=2 chi=0.8) constraint(1)
Working...
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