Dynare forums

Hi, dear professor, I want to such a thing and wonder if it possible to realize it in dynare.
First I do Bayesian estimation and have the smoothed shocks in my hand.
and I change the basic model to a ramsey-policy or a OSR style that makes certain policy variable optimally determined.
And then I put the smoothed shocks into the new ramsey-policy or OSR model in order to get the counterfactual smoothed time path of some certain endogenous variable.
So is that possible?
I know if I just change some part of the model, I could use simult_.m file to do that.

That should in principle be possible. The challenge may be to set the initial Lagrange multipliers. But of course, you can start everything at the steady state.

Thanks a lot. what I refer to is the linearized model so the steady-state is the same.
But how could I achieve that?
should I follow your replication MOD of Jerman&Quandrini(2012), and directly use the simult_.m file?
And in that process, in which step should I call the ramsey_policy.m file?
Note that I just wanna to use dynare's own ramsey_policy calculation, not do it by hand myself with numbers of Lagrange multiplier.
Thanks.

You will have to do this in two separate files. The first one does the estimation. The second one does the Ramsey policy for the same model and conducts the simulation using the simult_-function. That's where you will need the Lagrange multipliers.

Thanks, dear professor.
I still do not know in your so-called "The second one does the Ramsey policy for the same model", whether I could directly use Dynare's own Ramsey-policy command, or I should calculate the social planner's F.O.C by hand and put it into the model?
Thanks for answering!

You should use Dynare's ramsey-routines in the second file.