perfect foresight with actual paths of exogenous variables

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perfect foresight with actual paths of exogenous variables

Postby ncmbil » Wed Sep 12, 2012 10:17 pm

Hi all,

I am trying to conduct experiments under different policy expectations in a dynamic partial equilibrium framework.
First, I am trying to examine the model under perfect foresight.
My exogenous variables are different tax rates.
I thought the best way to analyze the model under perfect foresight is to feed the actual paths of taxes into the model,
and see how variables react.
However, I don't know how I can feed the actual paths of these exogenous variables into Dynare.
Could you please help me with that?

Many many thanks!
ncmbil
 
Posts: 5
Joined: Wed May 09, 2012 2:43 pm

Re: perfect foresight with actual paths of exogenous variabl

Postby jpfeifer » Mon Sep 17, 2012 5:37 pm

Simply use the shocks-block as documented in the manual. You need to enter the actual values by hand.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
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Location: Cologne, Germany

Re: perfect foresight with actual paths of exogenous variabl

Postby ncmbil » Mon Sep 17, 2012 6:30 pm

Okay!
Thank you for your response!
ncmbil
 
Posts: 5
Joined: Wed May 09, 2012 2:43 pm


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