IT RUNS !!!
Oh my god, I thought it would never work, I was getting really scared it would never work.
I literally could never have found this without your precious help !!!
Thank you so so so so much for your patience.
IT RUNS !!!
Oh my god, I thought it would never work, I was getting really scared it would never work.
I literally could never have found this without your precious help !!!
Thank you so so so so much for your patience.
Last question, how would I include a growth rate for the economy in my code ?
I would normally define a g parameter and do something like Y(1) = (1+g)*Y(0)
Since all my constraints are using the production function itself, I would have to define multiple variables and when I tried doing that, I ended up having too much or too many equations.
Is there a way to define growth in the model without timing the entire economy as I wrote as an exemple.
You are using perturbation techniques. That requires well-defined steady state. For that reason, you cannot add growth in the model. You need to enter the detrended model equations. An example is https://github.com/JohannesPfeifer/DSGE_mod/blob/master/RBC_baseline/RBC_baseline.mod where the gamma_x capture growth.