Hi,
I am trying to use dynare++ to solve for ramsey policy. I have two questions:
- is it necessary to set initval values? And if yes, do these initval values have to meet the steady state conditions?
- can I call an external function, like “external_function(name = funcname)” in dynare, in dynare++?
Thanks a lot.
First of all, why do you need Dynare++ for Ramsey?
- The same rule as in Dynare applies. You need to provide initial values for steady state finding
- No, that is not supported as far as I know.
I want to compute the second order approximation of the ramsey policy. It seems that dynare only supports the first order approximation. That’s why I want to use Dynare++ for ramsey.
[quote=“jpfeifer”]First of all, why do you need Dynare++ for Ramsey?
- The same rule as in Dynare applies. You need to provide initial values for steady state finding
- No, that is not supported as far as I know.[/quote]
Dynare Matlab returns first order approximation of solution under optimal policy and a second order approximation of the value of the objective function that is consistent with the first order approximation. Most likely, it is what you want.