dynare and overlapping generations model

[Tike]

Hi,

is there someone who has used Dynare to simulate an overlapping generations model? Or someone who knows if this is possible?


I would like to use Dynare to do that, but I only find examples for Ramsey models. If it is possible to use Dynare for simulating OLG models, is there someone who can provide me with an example please?

Thank you,

Tine

[MichelJuillard]

Yes, it is perfectly possible. Thr trick is to model the economy at a given time. Then several generations are different agents. You need to provide the optimality condition for each agent.

Something like that for a 2 generation model with log utility, when the second generation lives out of savings

1/C1 = beta*(1/C1(+1))*R(+1);
W1 = Y1-C1;
C2 = W1(-1);

Sorry, I don't have a full example at hand.

Best

Michel

[jkosti]

Hi,

I would be pleased if someone could offer some basic example of OLG-model for DYNARE. I have work out with Diamonds two-periods model, but something goes wrong everytime.

Thank you,

Juho

[nishi]

Hi jkosti,

I was attending CEF2007 at Montreal and learned that there are some
papers dealing with OLG model using DYNARE. I haven't actually read
the paper but I heard Docquire (2007) is actually doing OLG with DYNARE.

Good luck!

Nishi

[jkosti]

Hi Nishi,

Do you have name for the paper which handles OLG-models with DYNARE?
I have succeed in modelling some very simple OLG-models with dynare but still all the advises relate to this subject is needed.

Best,

Juho

[nishi]

Hi, Juho.

Unfortunately, Docquire (2007) is the only one that I've heard of.
The bottom line is how you can tranform the OLG model into
recursive expression such that

X(t) = omega*X(t-1) + sigma*e(t)

which is a state-space form. People say you can do it, but
I haven't seen the DYNARE example yet.

Nishi