Hello everyone! I am working on a model with two type of agents who have different discount rates. When I want to set the ramsey_policy, I find it is difficult to set the government discount rate because the social welfare function is the sum of two type of agents while they have different discount rate. Can dynare deal with this kind of problem? Thank you.
With the Ramsey command, you can only pass one planner objective with one planner discount factor. If you cannot nest your problem into this, then you cannot solve it using Dynare’s
ramsey_policycommand. But you may be able to derive the planner FOC’s yourself and then solve the model.
Thank you for your help.