Endogenous Growth Model Example


I am fairly new to dynare. I see a ton of examples on how to solve DSGE models here, but haven’t really found one that solves/simulates something akin to an endogenous growth model. Are there any examples of simple models being solved in dynare?

I apologize if the question is vague, I haven’t finished building my model yet, but I am wondering if its worth looking into Dynare for it

It depends on the context. Most of growth modeling is done in continuous time, which Dynare does not do. If you are considering discrete time models, there is the issue that Dynare mostly does perturbation techniques, which are done around a well-defined steady state (which is typically the balanced growth path). That solution technique may not be useful for endogenous growth models due to the solution becoming arbitrarily inaccurate as time progresses.
Thus, there is no general answer on whether Dynare can solve the particular model you have in mind.

I see. Thanks for the reply.

The kind of model I had in mind was the Aghion & Howitt models of technical change in discrete time. (Ref: https://www.brown.edu/Departments/Economics/Faculty/Peter_Howitt/publication/ahhandbook.pdf).

I am a bit lost on this since I do not have much experience with the coding/simulation side of things. Largely I want to look at the model’s transition dynamics between different parameter values. If not in dynare, then could you recommend other places where I could look to to start?


If I see it correctly, the model features a steady state in growth rates. Thus, its transition dynamics can be studied similar to https://github.com/JohannesPfeifer/DSGE_mod/blob/master/Solow_model