Hi Prof. Pfeifer, I know your non-stationary solow mod file that studies transition dynamics from 90% below BGP to BGP. May I kindly ask if dynare can simulate, not to BGP, but from BGP like in this graph. [Screenshot from 2022-03-10 20-16-13] They initially have the model in extensive form (x_…

Yes, e.g. var k invest; parameters delta g; g=0.02; delta=0.05; model; k=(1-delta)*k(-1)+invest; invest=(1+g)*invest(-1); end; initval; invest=1; k=1; end; perfect_foresight_setup(periods=100); perfect_foresight_solver; rplot k invest;

Can DYNARE simulate from BGP

Perfect foresight simulations

jpfeifer March 10, 2022, 2:33pm 2

See

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