Ramsey Steady State Conditional On Instrument

Steady state
1

Dear All,

I’m working on a Two-Agent New Keynesian (TANK) model with price stickiness à la Calvo and I’m looking for the Ramsey Optimal Monetary Policy in Dynare.

My problem is finding the Ramsey Steady State conditional on the instrument, that is the (gross) nominal interest rate. I’m attaching here my .mod file.
RICCIUTELLI_OMP_2023.mod (10.2 KB)

Thanks in advance for any suggestion.
Best,
Francesco Ricciutelli

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2

You can only use steady and check after planner_objective and ramsey_model .

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3

Thanks Professor Pfeifer,

here I attach the updated version without commands ‘‘steady’’ and ‘‘check’’ before ‘‘planner_objective’’ and ‘‘ramsey_model’’.

As I was mentioning above, I’m looking for the Ramsey Steady State conditional on the instrument, that is the (gross) nominal interest rate.

Does anyone know what I should do?

RICCIUTELLI_OMP_2023.mod (10.2 KB)

4

I am not sure I get the question. Your mod-file already runs and returns results. The conditional steady_state_model looks correct.

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5

Thanks again Professor, now is running. I was simulating the wrong mod file.
Best,
Francesco Ricciutelli