Ramsey Problem with Two or More Social Planners

[jpfeifer]

Dynare does not allow you to do this. Some of the issues arising have been discussed at

Welfare evaluation

It seems we are miscommunicating. If you restrict the policies to simple rules, both should be doable. The hard part is doing full Ramsey manually as the optimal policy would have a coefficient in front of every state variable. The cooperative case should be straightforward as you describe it: maximizing joint welfare. The hard thing is the Nash problem as now every country maximizes its own welfare taking the foreign policy as given. Here you are looking for the intersection of the best respon…