Hello, I am replicating a paper on search and matching with endogenous job separation. All value functions are included in equilibrium equations and there is integral with upper and lower limit in all value functions. Can anybody help me how to write these values functions with integral in dynare codes
The question is on what these integrals depend. If they depend on endogenous variables so that derivatives are required, then you may have to go for an external function. See e.g. Integration in Dynare 4
Thank you for your reply. I have 4 value functions which i have to write in my codes. Do i need external function of each of them or i can use one external function for all.
Thanking in anticipation
Without details, it is impossible to know. Often, you can define the whole object with the integral recursively as a separate variable so that integrals do not appear anywhere.
Thank you for your reply. I am replicating paper of (Miyamoto et.al 2019) and following is the value function of filled job.
Can you please explain how i can write it recursilvey?
Which paper exactly is it?
This is the paper.
Fiscal Stimulus and Unemployment Dynamics.pdf (1012.0 KB)
Have you asked the authors how they did this? It may be the easiest to linearize the equations by hand.
Yes i have asked but they did not reply. Dynare can find the steady state and linearize the model if the i follow the restrictions on the parameters or is it necessary to linearize the model?
These integrals are just showing the cumulative distribution with the range of (0,1). Do i still need to write integral as an external function?
Which integrals exactly are you referring to. Also, if you don’t know the distribution, then computing a CDF is hard…