Oil revenues savings/HELP thesis

[alfredoMX]

Hi everybody I´m a undergrad figthing with his thesis wich is about how much does Mexico has to save from the oil revenues.I´m also a new user of Dynare.I was hoping that somebody with a good soul can help me giving me a hint of how good does muy model works and what is not workin from a first look.I put in one page the basic model and the results, hoping to anyone can easily/fast-ly read it and check it.The first thing that make me doubt about the results are the levels of the variables, which may be due to the calibration. Another thing I think is that I think that I have no condition of transversality for Government saving. Or maybe yes, but I don't know where. I will be very grateful with any kind of help that anyone can give me.
Muchas gracias in advance!

https://www.dropbox.com/s/d5t8m9hdpsg9j ... .docx?dl=0

[jpfeifer]

1. dc must be

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dc= c-c(-1);

2. You need to fix the calibration. You level of a is so high that all of output is needed for interest service, because

Code: Select all

c=7.34968e-13


in steady state.
3. Regarding the units: consider the logarithm of the variables (i.e. percentage deviations from steady state), not their level as the latter is meaningless with constant returns to scale.
4. You are implicitly imposing the transversality constraint by writing your model recursively. You don't need to worry about it.

[alfredoMX]

thank you a lot Johannes ! you were very helpful !