Dear users,

I am trying to do ramsey policy by using the utility function of agents as welfare function (briefly I am trying to do what the get_ramsey package does). It should be possible to do it under dynare, but I did not find the Wiki page completely clear with this respect. The model is very easy, see below (and attachment):

VV = log© - chi/2*h^2 + beta*VV(+1); //welfare function

1/(1+R) - beta*(c/c(+1))/pie(+1); //euler

tau*(1-theta)+1+theta*(chi*h*c/exp(z)-1)-phi*(pie-1)*pie+beta*phi*(pie(+1)-1)*pie(+1); //rothemberg
exp(z) h-c(1+phi/2*(pie-1)^2); //resource constraint

z = rhoz*z(-1)+e_z; //technology

(removed initval part)

shocks;

var e_z = 0.01;

end;

planner_objective -VV; //minus, so that I maximize it

ramsey_policy;

The results seem to be quite ok to me (the multipliers which should be zero seem to be zero and so on …) .

I could not cross-check with the get_ramsey package so far.

Has anybody tried that so far ? Thanks a lot,

Giulio

prova_ramsey.mod (852 Bytes)