Bonds issue

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Bonds issue

Postby Xiao » Tue Jul 25, 2006 2:23 pm

Dear All,
I would like to understand how to allow in dynare holdings of bonds.
I am trying to modify standard RBC model, simpling including holding of bonds and the repayment back for the next period. But the code doens't work. Any hints ???
Xiao
 
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Joined: Mon Jul 24, 2006 7:37 pm

Re: Bonds issue

Postby jpfeifer » Tue Mar 10, 2015 8:55 am

You need to be more precise. What type of bonds are you talking about? What is your problem?
1. If you are talking about government bonds, you need to either break Ricardian equivalence.
2. If you are talking about private bonds, you need to have two agents/an open economy for them not be in zero net supply.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
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