Loop over tau parameter

Hello everyone:

This topic has been broached before, but I didn’t find something that helps me.
I’ve got a DSGE model and what I want to do is observe how TFIN changes when the parameter “tau_css” changes from 0 to 1 (Known as the laffer curve).
My problem is that the loop is not running well because the graph it generates shows a horizontal line for zero. I was wondering why it has this behavior.

Attached there is the mod file

laffer1.mod (7.3 KB)

I just saw the code. I observed that the code presents the model in steady state and log-linear. The code must present the model in real time and in steady state to apply this kind of exercise. Try to rewrite the code in the right way, then put it together with the attached code!

  1. Indeed, in a linearized model, the variables are in deviation from the steady state. In steady state such deviations are always trivially zero. If you want to know the effect of something on the levels, you cannot work with a model in deviations from the steady state level.
  2. You did not correctly handle parameter dependence. I updated your code accordingly.
    laffer1.mod (7.3 KB)