Integral aggregators HELP!

Hello everybody!

This is my first post. It is about my thesis I am slightly variating the Rauch search model to incorporate payroll taxes. I am taking this paper ({E0480E95-6D08-F39E-3FD0-C5BCF2021FF6}.pdf) as my reference. However, I am unable to define the integral aggregators and the index functions (equation 5) defined on page 13. I am aware that there are 2 thresholds at which individuals change their optimal occupation. Thus, the index functions will be 1 for each occupation in a continuum of values until the individuals find optimal to change occupations. If you could help with this I would greatly appreciate it.

Best regards,

Usually, the way to go is to define auxiliary variable storing the integrals. See e.g. the replication codes for Christiano/Motto/Rostagno (2014), Risk shocks.

Thank you very much! Unfortunately, despite my best tries, I have not been able to figure it out! I was searching the forum and found a similar problem to mine (also solved post withdrawn by you). I tried replicating it but to no avail. First try (defining external functions): tesis.mod (2.5 KB) . Second try (defining the integrals as other equations):thesis2.mod (2.7 KB)

Similar post solved by you: Integration in Dynare 4

P.S. Due to me being a new user I can only paste 2 links per post.

Thanks again!

Did you try to ask the authors how they did it?