Value of planner objective function

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Value of planner objective function

Postby dragonguo2017 » Fri Feb 24, 2017 4:43 am

The Rasemy routine of Dynare reports two values of planner objective function.
How does Dynare calculate these values? I am wondering if we can use
these values to rank alternative policy mix.
For example, compare welfare under different policy instruments: labor income tax or capital tax.

Thanks.
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Re: Value of planner objective function

Postby jpfeifer » Sat Feb 25, 2017 10:11 am

Please have a look at the manual of the unstable version. It documents the computation of these objects. And yes, it should allow you to rank alternative policies.
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Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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