using simul, problem in law of motion in foreign debt ?

faelanstevie
Posty: 10
Rejestracja: 25 sty 2018, o 15:40

using simul, problem in law of motion in foreign debt ?

Postautor: faelanstevie » 28 kwie 2018, o 13:02

Hi All,

I am solving a deterministic Ramsey (not DSGE) small open economy model. The setup is very similar to "“Closing Small Open Economy” by Schmitt-Groh & Uribe and I use debt dependent interest to pin down the steady state. the only difference is that in my model shock is unexpected ex-anti so I should use simul. I can solve the steady state without any problem and I set debt to be zero in the final steady state. My mod code can give me the transition path under shock path of TFP. However, the debt level has a jump during the last period and that law of motion in foreign debt does not hold in the last period.
In the model section I put
b=(1+rworld+rfun(b(-1),bbar, ppsi ))*b(-1)-nx;

For More You Can Check:-
App video production company

Kto jest online

Użytkownicy przeglądający to forum: Obecnie na forum nie ma żadnego zarejestrowanego użytkownika i 1 gość