Hi,

I am trying to replicate Karadi and Nakov (2021 JME) . I am particularly interested in replicating how they solve the optimal policy with perfect-foresight, for example, Figure 3 in the paper.

I am attaching the two code for computing the steady-state and then for solving the Ramsey problem `compute_ss.mod`

and `compute_dynamic.mod`

with other auxiliary files. These are modified codes just for this exercise based on the sample codes available here. Dynare says it can’t find the solution. When you get a chance, would you mind taking a quick look to see if I am doing it correctly?

Thank you so much!

Min

declaration.mod (676 Bytes)

initval.mod (703 Bytes)

equations.mod (4.0 KB)

calibration.mod (1.8 KB)

compute_dynamic.mod (401 Bytes)

compute_ss.mod (239 Bytes)

constraints.mod (66 Bytes)

planner.mod (166 Bytes)

shocks.mod (70 Bytes)