"if" in the model file

[mia-K71]

Hello,

I have a somewhat strange question... As far as I know, it is possible to create a several versions of the model code using the "if" function in the model file. If I understand correctly, a parameter that is already included in the database should be used as a condition . However, I want the exogenous/endogenous variable to be a condition.

I tried to experiment with this. I added an equation to the model that depend on own created function:

Tr_NGDP = remitances(P_NGDP);
where remitances is:

function y = remitances(profit)

for i=1:length(profit)
if profit(i)<=0
y(i) = 0;
else
y(i) = profit(i)*0.8;
end
end

end

The model is solved, but the filtration does not work properly.

So the question is the following, is it possible to use a variable in the condition?

Thank you!

[jaromir-benes]

Hi - this is because the Kalman filter uses a first-order approximate solution. Your function creates a nonlinearity. Assuming that profit>0 in steady state, the linear version of the equation is obviously y = profit and that is it. Best Jaromir

…

On Fri, Dec 9, 2022 at 3:00 PM mia ***@***.***> wrote: Hello, I have a somewhat strange question... As far as I know, it is possible to create a several versions of the model code using the "if" function in the model file. If I understand correctly, a parameter that is already included in the database should be used as a condition . However, I want the exogenous/endogenous variable to be a condition. I tried to experiment with this. I added an equation to the model that depend on own created function: Tr_NGDP = remitances(P_NGDP); where remitances is: function y = remitances(profit) for i=1:length(profit) if profit(i)<=0 y(i) = 0; else y(i) = profit(i)*0.8; end end end The model is solved, but the filtration does not work properly. So the question is the following, is it possible to use a variable in the condition? Thank you! — Reply to this email directly, view it on GitHub <#358>, or unsubscribe <https://github.com/notifications/unsubscribe-auth/AGCVKKVZBHBQLW3MT7JIFVDWMM3PRANCNFSM6AAAAAASZMCZFU> . You are receiving this because you are subscribed to this thread.Message ID: ***@***.***>