Directed technical change on Dynare

Good evening everyone,

Is it possible to simulate a directed technical change growth model in Dynare ? If so, do you have codes as examples?



That depends very much on the context. If you do perfect foresight simulations, that is possible.

1 Like

Thank you.

When declaring steady state values and shock values for my exogenous processes, do I put the ln(value) or the value? I reckon Dynare interprets all variables in logs.

For example, if I the (exogenous) price of my commodity is 80 euros, should I write it down on Dynare as ln(80) ?

Thanks again

Unless instructed to to so (e.g. via the loglinear-option), Dynare interprets all variables as levels.

1 Like