Hi all
If we have a constraint as follows:
1)) a=b+c
That here:
2) b=d+f
3) c=g+h
We do this to solve the optimization problem:
max The objective function
s.t.
4) a=d+f+g+h
FOC:
5)…
end
My question is if in the final equations in Dynare we bring all five of the following equations:
- a=b+c
- b=d+f
- c=g+h
- a=d+f+g+h
- …
Does Dynare identify equations 1, 2, and 3 as redundant equations?
These equations come for more intuition