Hello everyone,
I need to simulate a simple two-sector model, but I do not know where to start with the code. Can you suggest me a baseline Dynare code to model my multi-sector framework?
Thank you very much!
Hi Azus,
what do you mean by basic multi-sector framework? Do you want to study something in particular, i.e. want theory recommendations? Because your question is very vague.
Sorry, I will try to be more clear!
My model features a representative household and 2 firms/sectors, which differ for their cost structure. In the end, I would like to investigate how these difference matters if I hit the 2 sectors with the same shock.
The issue is mainly related to how to practically code this; I know how to write down a NK model on Dynare, but I never did the same exercise with a multisector model. That’s why I was asking for a baseline/tutorial dynare code for this.
Thank for the help!
I am not aware of such a code, but going from 1 to more sectors should be straightforward.
When you have the model and know how to implement one sector, as Johannes said, it should be straightforward to implement the second one. Chang et al (2019) have Dynare code and two sectors of intermediate goods production. Maybe not exactly what you are looking for but it could help you.
If you may refer to the paper or code link for Chang et al (2019) two-sector model. I checked out Andrew Chang’s page but unable to spot the paper or code.
Thanks.