Hi all, How can I specify a (wrong) steady state for Ramsey problem in Dynare? “steady(nocheck)” only works for normal problem. I guess it is from the over-identification of the Ramsey multipliers. I provide Dynare with an external function that maps an instrument to other endogenous variables. Dy…

Given the bugs associated with Ramsey when using instruments and a user-provided steady state, you should not use 4.4.3 but focus on the unstable. Providing a wrong steady state will yield wrong results.

Thanks so much Johannes! Sorry my question might not be clear enough: Is it possible to specify a steady state VALUE for endogenous variables, instruments and the multipliers directly in a Ramsey problem, given that the numerical difficulty in solving steady state? For example I have 1 instrument…

Hello, no it is not possible to force Dynare to approximate around a wrong steady state for the Ramsey problem. I don’t think that we should allow it. Not all Ramsey problem have a steady state and the information obtained from an approximation around a “wrong” steady state is of unknown quality. I…

One more question: would it be possible to compute the steady state if your model for a given value of the policy instrument (or another variable closely linked to it) and therefore ignoring the Lagrange multipliers? This would greatly simplify the numerical task of computing the steady state of the…

Many thanks Michel! I will have a look at the dyn_ramsey_static.m. In terms of your question. Yes I have programmed a function so that if we have the steady state policy instrument value the correct steady state endogenous variable value can be computed. As the system are linear in the multipliers…

Dear Dynare Team: I have a related question. I want to obtain the values of the Lagrange multipliers for a Ramsey problem, for which I know the Ramsey steady state values of the (original) model variables. It should be a simple linear problem for Dynare to find the Lagrange multipliers, but for som…

Hi Anton, you are right this is what should happen. Do you enter the steady state values that you know as numbers or as formulas in a steady_state_model block? I would like to see the code in order to debug what is going on. If you prefer you can send it directly to my email address

See also the example linked at [image] Ramsey steady state, user specified except multipliers Optimal Policy Usually, that is done by specifying a conditional steady state file. Given values for the instruments, you provide the steady states for private sector equilibrium.…

User specified steady state in Ramsey problem

Optimal Policy

jpfeifer 26 October 2022 15:41 9