Hello, I want to build a two generation utility funcation in my household part and I want to add it within other parts,such as government、factory. I wonder can DSGE do it or if it can’t which method can help to sovle two period utility function and let all parts make sense?
How to solve two generation uility funcion on DSGE model, or if not how to solve it using other model?
You need to provide more details. Do you have two overlapping generations within an infinite horizon model? Or is it a finite horizon model with a terminal period?
Thank you for your reply. I want to have two overlapping generations within an infinite horizon model. In this DSGE model, I want to add old and young genrations, each has different constraints, besides I also want to build factory and government part in this model. But I don’t konw how to build it in DSGE, can you give me some advice or some suggested reading meaterial about this overlapping generation model in DSGE .Thanks very much.
Have a look at