Dynare forums

Hello,

I am solving a Ramsey optimal taxation problem and I have trouble finding the steady state values. I have derived the first order conditions (f.o.c.) of the Ramsey problem and have written them down in the 'model' part of the mod file. Since the f.o.c.-s contain the Lagrange multipliers, which I cannot isolate, Dynare cannot find the steady state of the variables.

I tried writing a MATLAB code, but it doesn't work since I cannot write each 'left-hand side variable' in terms of known parameters or variables already solved in the lines above. Could you please tell me how to overcome this problem?

Many thanks!

Best,
Alpha

Hi.

I'm a starter and also interested in how one can solve Ramsey optimal taxation in dynare/matlab. I would be very thankful if you can share with me your codes or may be any practical example to learn from.

Best,
Elchin