Small open economy using VFI

[zapanga]

Dear Dynare People:


This is my first post, and Im not really sure I should post it here. I have never tried Dynare (although I know about it), but I need to compute the policy functions in a very small open economy model (only 3 state variables: capital, foreign debt and a shock). I think this can only be done using VFI (although, if some of you know how to do it in dynare, by all means tell me!).

I have only found codes in the net that use VFI in closed economy models. Do any ofyou know how I can adapt them or an already written code for this? Proper credit, of course, will be given.

Thank you a lot in advance.


Nico.

[diypartner]

I have never tried Dynare (although I know about it), but I need to compute the policy functions in a very small open economy model (only 3 state variables: capital, foreign debt and a shock).

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