Thank you for help in advance! I really appreciate it.
I'm learning to solve for a transition path from one steady state to another using dynare. Specifically, I use the RBC model provided by dynare, 'ramst.mod' and try to simulate the transition path following a permanent shock in "x", the technology parameter.
The problem is that, the equilibrium conditions do not hold for the end of the simulated path: i.e.
given the model,
- Code: Select all
model;
c + k - aa*x*k(-1)^alph - (1-delt)*k(-1); // Resource constraint
c^(-gam) - (1+bet)^(-1)*(aa*alph*x(+1)*k^(alph-1) + 1 - delt)*c(+1)^(-gam); // Euler equation
end;
if I set initval x=0.8, and in endval x=0.9, set the simulation periods=20, and check the resource constraint condition for the final period:
- Code: Select all
x=oo_.exo_simul;
tt=22;
c(tt) + k(tt) - aa*x(tt)*k(tt-1)^alph - (1-delt)*k(tt-1) //check the resource constraint
ans =
1.4732
The resource constraint does not hold at the end. I am wondering if I could use dynare to solve a transition path, where for each point on the path, including the end, the equilibrium conditions hold?
i attached my code. i have searched for similar issues, but only came up with this thread that may or may not be similar to the problem i am having. Thank you for your time in advance.
Sincerely,
Anita
