OLG Optimal Taxation
I stated working with Dynare only recently and I am trying to learn how to use the “ramsey_policy” command.
I took your code for basic OLG model by David Pugh (github.com/davidrpugh/pyeconomi … OLG-Models) and added taxes. It works and I get different allocations as I vary taxation.
I would like to be able to find the optimal taxes when say for instance the government has to raise some fixed revenue (for example 20% gdp). I have tried couple things but can’t get it to work. Codes attached – one is David’s with taxes and the other one is my attempt to add the ramsey to solve the planners problem for taxation. The second one incomplete for sure.