Hope you are well. I am attempting to replicate “Automation, stagnation and implications of a robot tax”, by Gasteiger and Prettner 2020.
I have successfully solved for the steady state and been able to incorporate a tax on robots, tau.
However I am struggling to understand how to implement tau varying over time, as done in figure 4 of said paper. I have attempted to use a varexo e and to use the simul command, but it was asking me to add a junk variable. When added I then had a further issue that end of life consumption, r and phi doesn’t appear as current period variables.
What is the best way to implement this please? I’ve spent several days reading documentation, but I think I’ve gotten as far as I currently can.
Thanks for all your hard work, dynare is the best tool for computational econ I’ve used so far!
attempt4.mod (2.3 KB)