Unless I specify the planner’s discount factor to be marginally above the private sector’s discount factor, I run into indeterminacy problems. To get a determinate solution, the planner’s discount factor only needs to be marginally different to the private sector one (e.g. 0.99001 vs. 0.99)
I have experienced this issue with different models.
Is there an explanation for such phenomenon?
Many thanks in advance,
Bianca
Dynare forums
Forums for asking questions, posting comments and uploading examples related to Dynare
ramsey policy: is there a bug?
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
2 posts
• Page 1 of 1
ramsey policy: is there a bug?
by bipaoli » Tue Jul 10, 2012 7:37 pm
- bipaoli
- Posts: 5
- Joined: Fri Oct 14, 2011 11:33 am
Re: ramsey policy: is there a bug?
by YHS » Sat Jul 14, 2012 1:22 am
I'm running Ramsey policy with Dynare v4.3.0 and don't have the problem you described. Your problem should be model-specific.
- YHS
- Posts: 8
- Joined: Fri May 11, 2012 11:41 pm
2 posts
• Page 1 of 1
Who is online
Users browsing this forum: Google [Bot] and 4 guests