I am using the Ramsey policy solver in DYNARE 4.4.3.

Also note that I am using an external steady state file in which the steady-state values of all endogenous variables are saved in a vector named ys.

It works fine if I only use one instrument.

However I get an error message if I use two. My two instruments are G and TAU. In order compute the optimal policy I commented out the two rules for G and TAU and wrote:

- Code: Select all
`planner_objective U;`

ramsey_policy(planner_discount=bbeta, irf=0, instruments=(G TAU) );

where U is the per-period utility.

I get the following error messages:

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`Undefined function or variable "ys".`

Error in dyn_ramsey_static (line 57)

[inst_val,info1] = dynare_solve(nl_func,ys(k_inst),0);

Error in evaluate_steady_state (line 55)

[ys,params] = dyn_ramsey_static(ys_init,M,options,oo);

Error in resol (line 104)

[dr.ys,M.params,info] = evaluate_steady_state(oo.steady_state,M,options,oo,0);

Error in stoch_simul (line 88)

[oo_.dr,info,M_,options_,oo_] = resol(0,M_,options_,oo_);

Error in ramsey_policy (line 25)

info = stoch_simul(var_list);

Error in optinv_sec_ord (line 677)

ramsey_policy(var_list_);

Error in dynare (line 180)

evalin('base',fname) ;

I noticed that in dyn_ramsey_static.m there is an IF statement for the case in which there is only one instrument and for the case in which there are more.

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`if inst_nbr == 1`

inst_val = csolve(nl_func,oo.steady_state(k_inst),'',options_.solve_tolf,100);

else

[inst_val,info1] = dynare_solve(nl_func,ys(k_inst),0);

end

Can the problem be here? Any idea on how to circumvent it?

Many thanks!