Good morning I am a total newbie with Dynare, and I am trying to buid a simple model of debt dynamics.
I defined the equations in the model block, and one of these is the government reaction function, that determines spending according to its debt target.
I’d like to have an if statement. Something like:
dcur = delta10.05(b0-bstar);
invg = chi0*dsp;
This is what I’d do in a matlab code, but of course it did not work within dynare!
Is there any possibility to do it? In genera, is it possible to say the model to use certain equations at certain moments, and others at other moments?
Can I for example set some parameters at different values with if statements? (say if the central bank is conservative then the inflation parameter is such, if the central bank is not, then the inflation parameter is something else