Hi professor, I have a question about the calibrated parameters of a ramsey model and estimation model.
If there is a parameter that is dependent on the steady state value of instrument value, how should I assign the value to the parameter in the parameter block ? And in addition, how should I assign the value to the parameter if I need to estimate some of other parameters?
In that case, the parameter is a dependent object. You will need to use a steady state file or block to set that parameter depending on the value of the instrument.
Hi Professor, if a parameter is dependent on the instrument value, can I simply define it in the steady-state block? How does Dynare identify the parameter value? Could you give me an example? I am doing the Ramsey policy as well.
Yes, that can be done in a steady_state_model block as in any other model. The steady state file just needs to be conditional on the value of the instrument as shown in the Dynare examples folder.