Simulation

[Shenelle]

I am very new to RATs and would like to perform a simple simulation exercise.

If I would like to simulate different responses in order to maintain a growth rate of GDP of 5% for example.
First assuming that Contribution of net exports to GDP is say -3.2% and private consumption expenditure to GDP is 3%
And I would like to simulate the increase in government spending required to maintain this 5% growth rate of GDP.
Is there any example of coding to do this?

[TomDoan]

Whether that's simple or not will depend quite a bit upon the model. Wouldn't consumption increase beyond 3% if you pushed GDP up through a fiscal stimulus?

If your intent is that the 3% for consumption and -3.2% for net exports are "baseline" when G growth is zero, then even in your simple model from the other thread, there will many sets of parameters that would achieve those two targets, so you would have to fix all but two of the parameters and solve back.

[Shenelle]

Yes that is the intention. Everything else remains constant with the exception of the the two parameters being observed to gauge the effect.
Thanks for your quick response.