Dear Dynare Forum.
I have ran into issues when coding a TANK model with distortionary taxes and transfers to hand-to-mouth agents and saver agents. I am researching on the topic of uncoventional fiscal policy, where consumption taxes evolve similar to a taylor type rule. The other distortionary taxes move in proportion to the consumption taxes to ensure intratemporal conditions to be the same in steadystate. I have two questions:
1.With my current setup there are no responses in labor hours for the hand-to-mouth agents. I am not sure why this is the case.
I would like to include steadystate transfers in my model for both hand-to-mouth agents and saver agents. I am not sure what i have done here make sense.
With Two agent problems, is the process of finding steady_state_model similar to a RANK setting, or there is a different way to do this.
Many thanks in advance! I have attached the mod file FYI
TANKcalibF.mod (6.8 KB)