I am a little confused with what we need to specify for the planner’s objective when running the ramsey policy. In Dynare’s wiki it gives an example where the objective function is quadratic on inflation output and interest rates but it says that it will maximize this function. Isn’t this quadratic function the social loss rather than the social welfare? That is, shouldn’t it be minimized?
I am equally confused with whether the output oo_.osr.objective_function is it the (theoretical mean of) planner’s objective or (-) the planner’s objective?
Many thanks