Dear @jpfeifer
When following this approach
dynare market_economy_benchmark;
target = oo_.mean(1);
dynare ramsey_policy;
[lambda_solution,distance]=fsolve(@(lambda)get_consumption_equivalent(lambda,target,M_,options_,oo_),0.3)
I get an error “evaluate_planner_objective: encountered NaN moments in the endogenous variables often associated
evaluate_planner_objective: with either non-stationary variables or singularity due e.g. including
evaluate_planner_objective: the planner objective function (or additive parts of it) in the model.
evaluate_planner_objective: I will replace the NaN with a large number, but tread carefully,
evaluate_planner_objective: check your model, and watch out for strange results.”
Is it because we cannot define Recursive Welfare for Ramsey as in Two m files and two mod files - #22 by jpfeifer
Please guide me on how to compute consumption equivalent while using Ramsey as the benchmark