Commit 7d4a7b1b by MichelJuillard

### adding test for computing Ramsey policy in a model using the

`expectation operator.`
parent ff4285d6
 //MODEL: //test on Dynare to find the lagrangean multipliers. //We consider a standard NK model. We use the FOCS of the competitive economy and we aim at calculating the Ramsey optimal problem. //------------------------------------------------------------------------------------------------------------------------ //1. Variable declaration //------------------------------------------------------------------------------------------------------------------------ var pai, c, n, r, a; //4 variables + 1 shock varexo u; //------------------------------------------------------------------------------------------------------------------------ // 2. Parameter declaration and calibration //------------------------------------------------------------------------------------------------------------------------- parameters beta, rho, epsilon, omega, phi, gamma; beta=0.99; gamma=3; //Frish elasticity omega=17; //price stickyness epsilon=8; //elasticity for each variety of consumption phi=1; //coefficient associated to labor effort disutility rho=0.95; //coefficient associated to productivity shock //----------------------------------------------------------------------------------------------------------------------- // 3. The model //----------------------------------------------------------------------------------------------------------------------- model; a=rho*(a(-1))+u; 1/c=beta*(1/(c(+1)))*(r/expectation(0)(pai(+1))); //euler omega*pai*(pai-1)=beta*omega*(c/(c(+1)))*(pai(+1))*(pai(+1)-1)+epsilon*exp(a)*n*(c/exp(a)*phi*n^gamma-(epsilon-1)/epsilon); //NK pc //pai*(pai-1)/c = beta*pai(+1)*(pai(+1)-1)/c(+1)+epsilon*phi*n^(gamma+1)/omega-exp(a)*n*(epsilon-1)/(omega*c); //NK pc (exp(a))*n=c+(omega/2)*((pai-1)^2); end; //-------------------------------------------------------------------------------------------------------------------------- // 4. Steady state //--------------------------------------------------------------------------------------------------------------------------- initval; pai=1; r=1/beta; c=0.9671684882; n=0.9671684882; a=0; end; //--------------------------------------------------------------------------------------------------------------------------- // 5. shocks //--------------------------------------------------------------------------------------------------------------------------- shocks; var u; stderr 0.008; end; //-------------------------------------------------------------------------------------------------------------------------- // 6. Ramsey problem //-------------------------------------------------------------------------------------------------------------------------- planner_objective(ln(c)-phi*((n^(1+gamma))/(1+gamma))); write_latex_static_model; write_latex_dynamic_model; ramsey_policy(planner_discount=0.99);
Supports Markdown
0% or .
You are about to add 0 people to the discussion. Proceed with caution.
Finish editing this message first!