perfect foresight with actual paths of exogenous variables
Posted: Wed Sep 12, 2012 10:17 pmHi all,
I am trying to conduct experiments under different policy expectations in a dynamic partial equilibrium framework.
First, I am trying to examine the model under perfect foresight.
My exogenous variables are different tax rates.
I thought the best way to analyze the model under perfect foresight is to feed the actual paths of taxes into the model,
and see how variables react.
However, I don't know how I can feed the actual paths of these exogenous variables into Dynare.
Could you please help me with that?
Many many thanks!
I am trying to conduct experiments under different policy expectations in a dynamic partial equilibrium framework.
First, I am trying to examine the model under perfect foresight.
My exogenous variables are different tax rates.
I thought the best way to analyze the model under perfect foresight is to feed the actual paths of taxes into the model,
and see how variables react.
However, I don't know how I can feed the actual paths of these exogenous variables into Dynare.
Could you please help me with that?
Many many thanks!