# Price dispersion in TANK

**URL:** <https://forum.dynare.org/t/price-dispersion-in-tank/28019>\
**Category:** Stochastic simulations\
**Created:** [9 October 2025 00:00 UTC](https://forum.dynare.org/t/price-dispersion-in-tank/28019 "2025-10-09T00:00:46Z")\
**Posts on this page:** 3\
**Page:** 1

<div class="post-metadata">

**Author:** ![Samvel](https://forum.dynare.org/user_avatar/forum.dynare.org/samvel/32/20171_2.png) [@Samvel](https://forum.dynare.org/u/Samvel)\
**Post date:** [9 October 2025 00:00 UTC](https://forum.dynare.org/t/price-dispersion-in-tank/28019/1 "2025-10-09T00:00:46Z")

</div>

Hi everyone

I am working with a TANK model and want to implement the non-linear equations in Dynare to perform welfare analysis. I need to incorporate sectoral price dispersion (I have two sectors, so j = 2). May I kindly ask for your advice on whether I can implement the price dispersion in Dynare using the highlighted equations (under a Calvo pricing setting)? I express the nominal variables in units of P\_{1,t}. Thank you very much in advance.

 ![image](https://forum.dynare.org/uploads/default/original/3X/e/0/e0d67a0cde1faf62a0d23bf6dfd4921bf501fe8e.png)

### 

### 

###

---

<div class="post-metadata">

**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [9 October 2025 07:13 UTC](https://forum.dynare.org/t/price-dispersion-in-tank/28019/2 "2025-10-09T07:13:38Z")

</div>

Typically, that is exactly the way to proceed. See also [DSGE\_mod/Gali\_2015/Derivation\_Recursive\_Pricing\_Equation.pdf at master · JohannesPfeifer/DSGE\_mod · GitHub](https://github.com/JohannesPfeifer/DSGE_mod/blob/master/Gali_2015/Derivation_Recursive_Pricing_Equation.pdf)  
together with  
[DSGE\_mod/Gali\_2015/Gali\_2015\_chapter\_3\_nonlinear.mod at master · JohannesPfeifer/DSGE\_mod · GitHub](https://github.com/JohannesPfeifer/DSGE_mod/blob/master/Gali_2015/Gali_2015_chapter_3_nonlinear.mod)

---

<div class="post-metadata">

**Author:** ![Samvel](https://forum.dynare.org/user_avatar/forum.dynare.org/samvel/32/20171_2.png) [@Samvel](https://forum.dynare.org/u/Samvel)\
**Post date:** [9 October 2025 08:00 UTC](https://forum.dynare.org/t/price-dispersion-in-tank/28019/3 "2025-10-09T08:00:15Z")

</div>

Thank you so much for the quick answer.