Simulation of dsge with distorsionary tax

General DSGE Modeling
1

I have problems to introduce the taxation in capital as in Forni, Monteforte and Sessa " the general equilibrium effects of fiscal policy: estimates for the euro area".

as you can see in the .mod, there’s a variable named br that in my paper exercise is solved as br = b/p. I don’t know how or where I can find a solution for this.

if it’s needed i can put the exercise too. thank you!

EX_01_01.mod (3.2 KB)

2

Hello, Andres,
Not knowing much about your model, I think you are missing a first order condition with respect to b.
Let me know whether it is that the problem.
Best

3

Good morning,
Excuse for this question but I have the same problem in my project connected to this topic.
The question is about: I’m having trouble introducing the government budget constraint (linked to the last page of the attached paper). Could someone please help me?
Gruppo14.pdf (134.5 KB)

4

Please coordinate that only one person of a group asks the same question. See

5

Thank you so much for the courtesy.
The error connected with the project (correlated with the prior pdf) are the follower:

  1. For Dynare: Symbol tauk is being treated as if it were a function (i.e., takes an argument that is not an integer).
  2. We don’t know how to elaborate the government budget constraint represented in the page 4 of file (point 1 of the exercise, where there is the budget constraint modified
    3)We don’t know if we are missing equations (like government spending)

provafinal.mod (2.9 KB)
)

6

See my reply at Transcription of the equation on dynare - #5 by jpfeifer

7

Hello, I would start by checking Eq 13, you are missing a multiplication symbol just after tauk (I guess).
Also phitauy is not declared in the parameters section (in case it is a parameter). After that, maybe you can start looking at other possible issues.
Best