# Estimate the Laffer curve with a DSGE on Dynare **URL:** \ **Category:** General DSGE Modeling\ **Created:** [23 September 2021 17:11 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945 "2021-09-23T17:11:53Z")\ **Posts on this page:** 14\ **Page:** 1
**Author:** ![E.Ahmed](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/e19b73/32.png) [@E.Ahmed](https://forum.dynare.org/u/E.Ahmed)\ **Post date:** [23 September 2021 17:11 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/1 "2021-09-23T17:11:54Z")
Dear Professors and Colleagues, Once again, I come here to ask for your help. I wanted to estimate the Laffer curve in my DSGE analysis. Some of you suggested me to review “F-de-Córdoba and Torres (2012)”, but the latter did not show the useful technique well. Finally, I thought of asking you again for help on this; what are the steps to take to bring out the laffer curve that concerns VAT for example. Thanks in advance. ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [24 September 2021 06:39 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/2 "2021-09-24T06:39:39Z")
What exactly are you trying to do? What do you mean with “estimate the Laffer curve”? ---
**Author:** ![E.Ahmed](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/e19b73/32.png) [@E.Ahmed](https://forum.dynare.org/u/E.Ahmed)\ **Post date:** [25 September 2021 02:05 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/3 "2021-09-25T02:05:06Z")
In fact, the exact question is asked about looping a dynare.mod around a parameter. Is this possible? If yes, and if you allow it, can you give a simple example. I mentioned the Laffer curve as an example, how to show stationary states when tax rates vary from 0 to 1. ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [25 September 2021 17:29 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/4 "2021-09-25T17:29:36Z")
Have a look at > [@Loop over parameters](https://forum.dynare.org/t/loop-over-parameters/3335/2): > > You are not actually setting the parameter. What you should do is use the the set\_param\_value command. Moreover, if you have an analytic steady state, use a steady\_state\_model block instead of initval. You can find an example for such a loop here: [[Need help to check Matlab compatibility](http://forum.dynare.org/t/need-help-to-check-matlab-compatibility/3192/1)). Basically, you need to write a Matlab m-file with the following parts: rhos = 0.8:0.05:1.05; first\_time = 1; for i=1:length(rhos) if first\_time set\_param\_value('rho',rhos(i)); dynare your\_… ---
**Author:** ![E.Ahmed](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/e19b73/32.png) [@E.Ahmed](https://forum.dynare.org/u/E.Ahmed)\ **Post date:** [25 September 2021 22:54 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/5 "2021-09-25T22:54:30Z")
Very important, Thank You very much Professor. ---
**Author:** ![E.Ahmed](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/e19b73/32.png) [@E.Ahmed](https://forum.dynare.org/u/E.Ahmed)\ **Post date:** [26 September 2021 15:58 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/6 "2021-09-26T15:58:38Z")
Dear Professor @jpfeifer , Knowing that I have seen all the similar publications that have already been posted here on the forum, I still have two problems: 1- I don’t know how to export the steady state results in Excel format. 2- The second problem is the most important one. Indeed, I now need to plot the evolution of the variables around the parameter, but I don’t know how to do it on dynare. Thank you in advance. ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [27 September 2021 08:10 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/7 "2021-09-27T08:10:17Z")
1. Use `xlswrite`. See [(Not recommended) Write spreadsheet file - MATLAB xlswrite - MathWorks Deutschland](https://de.mathworks.com/help/matlab/ref/xlswrite.html) 2. What do you mean with > [@E.Ahmed](#): > > evolution of the variables around the parameter ? ---
**Author:** ![E.Ahmed](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/e19b73/32.png) [@E.Ahmed](https://forum.dynare.org/u/E.Ahmed)\ **Post date:** [27 September 2021 12:42 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/8 "2021-09-27T12:42:37Z")
Dear @jpfeifer After calculating the different values of Y at equilibrium, giving varpi=0.001, 0.002, 0.003, …, 1 using just dynare, I want to plot the (Y, varpi) but I don’t know how to do it. Thank you very much ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [27 September 2021 12:45 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/9 "2021-09-27T12:45:58Z")
You save both into a vector and then plot them using Matlab functions. ---
**Author:** ![E.Ahmed](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/e19b73/32.png) [@E.Ahmed](https://forum.dynare.org/u/E.Ahmed)\ **Post date:** [27 September 2021 13:06 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/10 "2021-09-27T13:06:40Z")
It is not clear. how I record the equilibrium matrix, then select the vectors to plot them. If you allow me to give a simple example, I really need it. I just looked at similar publications, but no case is appropriate for me. In case of need, you will find attached my code [solt.mod](https://forum.dynare.org/uploads/short-url/26IKGkYQL8BazxM1oLQNQSIqJt8.mod) (2.1 KB) ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [28 September 2021 08:19 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/11 "2021-09-28T08:19:52Z")
It should be something along the lines of ```auto tau_parameters = 0.1:0.3:0.8; temp_mat=NaN(size(oo_.steady_state,1),length(tau_parameters)); for i=1:length(tau_parameters) set_param_value('varpi',tau_parameters(i)); [oo_.steady_state,M_.params,info] = steady_(M_,options_,oo_); if ~info temp_mat(:,i)=oo_.steady_state; end end; plot(tau_parameters,temp_mat(strmatch('Y',M_.endo_names,'exact'),:)) ``` ---
**Author:** ![E.Ahmed](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/e19b73/32.png) [@E.Ahmed](https://forum.dynare.org/u/E.Ahmed)\ **Post date:** [29 September 2021 21:23 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/12 "2021-09-29T21:23:15Z")
Dear @jpfeifer , Your answer is appropriate. I tested this code and the result was very good. Thank you very much for your help. Best Regards Ahmed ---
**Author:** ![E.Ahmed](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/e19b73/32.png) [@E.Ahmed](https://forum.dynare.org/u/E.Ahmed)\ **Post date:** [8 January 2022 13:43 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/13 "2022-01-08T13:43:33Z")
Dear Professor @jpfeifer , I need to do the previous looping for two parameters (varpi & psi). tau\_parameters = 0.1:0.3:0.8; temp\_mat=NaN(size(oo\_.steady\_state,1),length(tau\_parameters)); for i=1:length(tau\_parameters) for j=1:length(tau\_parameters) set\_param\_value(‘varpi’,tau\_parameters(i)); set\_param\_value(‘psi’,tau\_parameters(j)); [oo\_.steady\_state,M\_.params,info] = steady\_(M\_,options\_,oo\_); if ~info temp\_mat(:,i,j)=oo\_.steady\_state; end end end; Then plot the isocurve of Y. On matlab, we usually do “contour(varpi,psi,Y)” But on Dynare, which I need, I don’t know what to do and thanks in advance. ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [11 January 2022 07:58 UTC](https://forum.dynare.org/t/estimate-the-laffer-curve-with-a-dsge-on-dynare/18945/14 "2022-01-11T07:58:06Z")
See my reply at > [@Contour function in dynareg](https://forum.dynare.org/t/contour-function-in-dynareg/19598/2): > > No. Dynare relies on Matlab plotting capabilities. You would need to use the Matlab function on the data object you want to plot.