32 lines
623 B
Modula-2
32 lines
623 B
Modula-2
// Example of Ramsey policy computation
|
|
|
|
var y inflation r;
|
|
varexo y_ inf_;
|
|
|
|
parameters delta sigma alpha kappa gammarr gammax0 gammac0 rbar lambda1 lambda2;
|
|
|
|
delta = 0.44;
|
|
kappa = 0.18;
|
|
alpha = 0.48;
|
|
sigma = -0.06;
|
|
lambda1 = 0.5;
|
|
lambda2 = 0.1;
|
|
|
|
model(linear);
|
|
y = delta * y(-1) + (1-delta) * y(+1) + sigma *(r - inflation(+1)) + y_;
|
|
inflation = alpha * inflation(-1) + (1-alpha) * inflation(+1) + kappa*y + inf_;
|
|
end;
|
|
|
|
shocks;
|
|
var y_;
|
|
stderr 0.63;
|
|
var inf_;
|
|
stderr 0.4;
|
|
end;
|
|
|
|
planner_objective inflation^2 + lambda1*y^2 + lambda2*r^2;
|
|
|
|
write_latex_dynamic_model;
|
|
|
|
ramsey_policy(planner_discount=0.95, order = 1);
|