Dynare forums

Hi,

I am trying to use dynare++ to solve for ramsey policy. I have two questions:
1) is it necessary to set initval values? And if yes, do these initval values have to meet the steady state conditions?
2) can I call an external function, like "external_function(name = funcname)" in dynare, in dynare++?

Thanks a lot.

First of all, why do you need Dynare++ for Ramsey?

1. The same rule as in Dynare applies. You need to provide initial values for steady state finding
2. No, that is not supported as far as I know.

I want to compute the second order approximation of the ramsey policy. It seems that dynare only supports the first order approximation. That's why I want to use Dynare++ for ramsey.

jpfeifer wrote:First of all, why do you need Dynare++ for Ramsey?

1. The same rule as in Dynare applies. You need to provide initial values for steady state finding
2. No, that is not supported as far as I know.

Dynare Matlab returns first order approximation of solution under optimal policy and a second order approximation of the value of the objective function that is consistent with the first order approximation. Most likely, it is what you want.