Hello and thank you in advance!
I have been trying to firstly model the transition path of a Ramsey model to its steady state. While with the steady command I do get sensible values for all variables, when I plot it via the perfect foresight simulation my consumption is higher than my output.
And secondly and even more importantly, I have tried to change the traditional Ramsey model by introducing saving share which increases in output. But then my consumption is 0 in the steady state and I just do not understand why. Also my trajectory simulation then again shows a higher consumption than ouput for the given simulation period.
The two codes are attached.
I am quite new to dynare or any programming so I hope those are not obvious problems or even if so that somone might help me! Thank you again in advance and best,
Neele
Ramsey_increasings.mod (2.2 KB)
Ramsey_unchanged.mod (2.2 KB)