<p>I am new to dynare. I am trying to replicate the calibration of the paper '<a href="https://www.google.co.in/url?sa=t&amp;source=web&amp;rct=j&amp;url=https://www.dallasfed.org/assets/documents/institute/events/2009/090320durate.pdf&amp;ved=2ahUKEwjm8LqYv5jhAhVHiXAKHWfJDAYQFjABegQIBxAB&amp;usg=AOvVaw0b182OZmztje52hZqGKGZK&amp;cshid=1553352023866" rel="nofollow noreferrer">Structural transformation and aggregate productivity</a>' by Margarida Duarte and Diego Restuccia. (Picture attached) </p>

<p>In this calibration technique, some parameters are known while others (b and <span class="math-container">$\rho$</span>) are estimated such that the squared difference between data and model moments reduces. </p>

<p>My problem is - in all the calibration exercises that I saw regarding macroeconomics models in Dynare, all the parameter values are assumed and model is calibrated by computing future period values using these initial period values of variables and parameters. [Picture attached] </p>

<p>My question is how can we do calibration by generalized methods of moments in Dynare? Is it possible? Can someone provide me the document or any kind of information will be helpful. </p>

<p><img src="https://i.sstatic.net/gEzVQ.jpg" alt="Structural Transformation by Margarida Duarte"></p>

<p><img src="https://i.sstatic.net/waKxv.jpg" alt="Calibration Code"></p>

CC BY-SA 4.0
2019-03-23T12:29:43.183Z
Is the mentioned paper by Duarte :  The Role of the Structural Transformation in Aggregate Productivity, Margarida Duarte and Diego Restuccia, The Quarterly Journal of Economics, Vol. 125, No. 1 (Feb., 2010), pp. 129-173 ?
emeryville
CC BY-SA 4.0
2019-03-23T13:53:11.017Z
Yes, it is this paper. @emeryville
Elina Gilbert
CC BY-SA 4.0
2019-03-23T14:05:38.090Z
so please update your question and provide a link to the paper.
emeryville
CC BY-SA 4.0
2019-03-23T14:42:36.177Z
Sorry, I have now provided the link to the paper. @Emeryville
Elina Gilbert
<macroeconomics><computation><dynare>
Generalized method of moments in Dynare
Elina Gilbert
# Generalized method of moments in Dynare

(Asked by: username_0 on 2019-03-23)

I am new to dynare. I am trying to replicate the calibration of the paper '[Structural transformation and aggregate productivity](https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.dallasfed.org/assets/documents/institute/events/2009/090320durate.pdf&ved=2ahUKEwjm8LqYv5jhAhVHiXAKHWfJDAYQFjABegQIBxAB&usg=AOvVaw0b182OZmztje52hZqGKGZK&cshid=1553352023866)' by Margarida Duarte and Diego Restuccia. (Picture attached)

In this calibration technique, some parameters are known while others (b and $\rho$) are estimated such that the squared difference between data and model moments reduces.

My problem is - in all the calibration exercises that I saw regarding macroeconomics models in Dynare, all the parameter values are assumed and model is calibrated by computing future period values using these initial period values of variables and parameters. [Picture attached]

My question is how can we do calibration by generalized methods of moments in Dynare? Is it possible? Can someone provide me the document or any kind of information will be helpful.

![Structural Transformation by Margarida Duarte](https://i.sstatic.net/gEzVQ.jpg)

![Calibration Code](https://i.sstatic.net/waKxv.jpg)

**Tags:** macroeconomics, computation, dynare
> **Comments:**
> **username_1**: Is the mentioned paper by Duarte :  The Role of the Structural Transformation in Aggregate Productivity, Margarida Duarte and Diego Restuccia, The Quarterly Journal of Economics, Vol. 125, No. 1 (Feb., 2010), pp. 129-173 ?  
> **username_0**: Yes, it is this paper. @emeryville  
> **username_1**: so please update your question and provide a link to the paper.  
> **username_0**: Sorry, I have now provided the link to the paper. @Emeryville  

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## 0 answers

