Retrieving the Optimal Policy Rule in Ramsey Policy

Optimal Policy
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Dear Prof. Pfeifer,

I am not very familiar with the Ramsey Policy (RP).

However, after carefully following your comments, notes and the Dynare Manual, I was able to successfully run my RP model.

May you kindly tell me, is there a way to find the Optimal Policy rule used by Dynare in generating the results. As in, in standard Dynare coding I specify the monetary policy rule, and IRFs are plotted based on this rule. But in RP, I DO NOT specify such policy rule, but as I understand RP solves for the optimal path for the policy rate. In order for the RP to draw the IRFs, it should somehow worked out the optimal policy rule I guess.
Is there a way that I can find the Optimal Policy rule used by Dynare when solving the RP?

Thank very much for your time in advance.

Regards
Chashika.

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In Dynare 4.6.1, if you call stoch_simul with a ramsey_model-statement, you will get a display of the decision rules.

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Dear Prof. Pfeifer,

Thank you very much for your quick reply.

I am sorry I am not too familiar with the RP coding in Dynare.
Could you kindly help me locate and tell me how I can retrieve the Decision Rules?

All I want is to find the Monetary Policy Rule, where I specify “instrument = r” in <ramsey_model> command.

Also, please tell me if I can get the policy rule with the <ramsey_policy> command, because I use the <ramsey_policy> command not the <ramsey_model> command.

If you have any comprehensive document, or any detailed note where I can learn about Ramsey Policy that would be great. So far I have managed to do all these thank to all your comments and notes in Dynare Manual. But I need to understand this topic a little more in-depth step by step.

Your help is greatly appreciated.

Kind regards
Chashika

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  1. As always, the decision rules are saved in oo_.dr
  2. The ramsey_policy-command is the old syntax for ramsey_model plus stoch_simul.
  3. Please have a look at the Ramsey_Example.mod that comes in the examples-folder of Dynare 4.6
1 Like
5

Dear Prof. Pfeifer,

Thank you so much for your kind reply…

Regards
Chashika