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/2h^2 + betaVV(+1); //welfare function
1/(1+R) - beta*(c/c(+1))/pie(+1); //euler
tau*(1-theta)+1+theta*(chihc/exp(z)-1)-phi*(pie-1)pie+betaphi*(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)