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1. #Dynare forums view topic how to#
2. #Dynare forums view topic mod#
3. #Dynare forums view topic manual#
4. #Dynare forums view topic software#
5. #Dynare forums view topic code#

So, the values of (ALL?) the model parameters are specified at this step because they influence the value of the steady state of c? ad hoc value for when the gradient is sufficiently small) and 100 is the maximum number of iterations to be used. Then in the second line where csolve is usedĬode: Select all applies some sort of numerical optimisation algorithm (does indicate a model local variable?), where c0 is the initial value, specifies the gradient, 1e-8 is the terminal condition (i.e. pai) in the find_c function? Is it because the steady state value of pai directly depends on the value of the instrument and it is recursively used in the steady state of c? Why is one of the endogenous variables (i.e. The arguments inside find_c, are they ALL the model parameters (except for technological progress persistence) or are they only the parameters that would affect c from equation 3?Ĭode: Select all equation 3: beta*pai(+1)*(pai(+1)-1)/c(+1)+epsilon*phi*n^(gamma+1)/omega -exp(a)*n*(epsilon-1)/(omega*c)

#Dynare forums view topic mod#

Where c0 is the initial value (=0.96 in the mod file). Then the find_c.m file has the following:Ĭode: Select all function c = find_c(c0,pai,beta,epsilon,phi,gamma,omega) This is done because the steady state value of the instrument r is ex ante not known and thus the analytical solution to the steady state of c is not possible. Returns a non-zero value for c, which is found numerically from the find_c.m file. The line in the steady_state_model block of the mod fileĬode: Select all c = find_c(0.96,pai,beta,epsilon,phi,gamma,omega)

#Dynare forums view topic software#

However, I still don't think I quite understand what the software is doing, because I can't apply it to any other models (I always get an error message that says either "too many input arguments" or "not enough input arguments"). Attachments nk_ss.mod Michel Juillards example (993 Bytes) Downloaded 147 times Ramsey Policy.pdf The set of notes (175.11 KiB) Downloaded 205 timesįollowing your guidance, I can now run the example without any problems. Andy Levin's codes are also outdated and don't work on recent versions of Dynare. So I could really use some help in trying to find these conditional steady states, because I am sure that this is the root of all problems. Then specifying the instrument in the initval, whereas the rest of the model in steady_state_model block leads to singularity (as in other topics here). I tried looking into other topics on similar issues, but running my model with just initval doesn't work. The only thing I do not understand is how the steady state has to be specified (hence the example above cannot be implemented, and I am using unstable version of dynare 4.4.3).

#Dynare forums view topic manual#

I have read the dynare manual and I understand that you need to omit he Taylor rule in the model (if it applies), that commands "steady" are incompatible with ramsey_policy, I know how the policy objective is specified and what the ramsey_policy options are. ĮRROR: nk_ss.mod: line 35, col 12: character unrecognized by lexer Starting preprocessing of the model file.

#Dynare forums view topic code#

The problem is that dynare does not recognise the command and the code cannot be implemented (see error message below) even if I name the. Ramsey_policy(planner_discount=0.99,order=1,instruments=(r)) įunction c = find_c(c0,pai,beta,epsilon,phi,gamma,omega)Ĭ = r = nk_ss(c,pai,beta,epsilon,phi,gamma,omega) Parameters beta, rho, epsilon, omega, phi, gamma The code for a generic model provided in the notes is as follows: I tried to follow the Michel Juillard's set of notes and implement his example (see attached file). The problem that I am having is that I do not quite understand what it means to specify the steady state of the model CONDITIONAL on the instruments used.

#Dynare forums view topic how to#

I'm trying to work out how to run the Ramsey_Policy in dynare.