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?
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!