I have an important doubt to resolve. In my DSGE model I have households, firms, government and central bank with the presence of public capital , public expenditure and public investments and distortionary taxation.
In setting the welfare maximization problem I used a Ramsey Decision problem and Dynare returns me the welfare losses. But on an analytical level I would need to derive / extrapolate the optimal functional form of one of the variables from which Dynare then calculates the welfare loss.
For example, if I wanted to right in my paper the relative one the variable of public spending, by hand, I would have to derive the lagrangian of the single equations eliminating any lagrange multiplier by substitution to obtain the optimal rule of public spending. is it a feasible procedure with a large number of lagrange multiplier? or there is another procedure to do this?
Thank You all for your help