Basic questions

Dynare help (legacy posts)
1

Hello,

I try to reproduce Dan Ben-David and Michael B. Loewy 2002 paper (papers.ssrn.com/sol3/papers.cfm? … _id=359262) in which they add openness to the traditional neoclassical growth model.

I’m not familiar with modelling and using Dynare, I typed in the steady state equations, but it is not clear to me what should I do when I have to determine for example gamma_y as the growth rate of y, and later also the steady state equation of gamma_y.

Isn’t it a problem when the same variable is determined twice in the “model” section?

Also, in the paper the stead state equations are the following
i.imgur.com/E49bp0C.png
and in steady state the growth rates will be the same
i.imgur.com/sfIwWd5.png

Can I just ignore the equations in the first picture?

I’d appreciate any help! If anyone could send me the code of a different model in which I could alter the trade flows/economic growth by changing the tariff rates that would be also a great help!

Thanks!

2

I am not familiar with that type of model, but it seems you need to solve for the fixed point of the growth rates. And no, you cannot ignore these equations as you will be missing one important source of dynamics (unless you want to shut this off).

3

Thank you!