Hi
Model Tax.pdf (642.5 KB)
Friends, I have a question.
I wanted to know in modeling that have relationships with maximum and minimum, such as relationships 4 and 11. Are these relationships included in linearization?
If they are included, how should these relationships be linearized and coded?
The modeling file is attached.
No, max and min operators are incompatible with stoch_simul because they will drop out during linearization. You can either use OccBin or perfect_foresight.