I wouldn't recommend this, since it creates a very misleading plot, but you can do it with two calls to stat_density(...)
.
ggplot(data=data, aes(x=V4, shape=model, colour=model, lty=model)) +
stat_density(data=data[data$model=="Yes",], adjust=10,
geom="line",position="identity") +
stat_density(data=data[data$model=="No",], adjust=1,
geom="line",position="identity") +
facet_grid(tau~density, scale="free") +
geom_vline(xintercept=-3, lty="dashed") +
ggtitle("Kernel Density") +
xlab("Data") +
ylab("Kernel Density") +
theme(plot.title=element_text(face="bold", size=17),
axis.text.x= element_text(size=14),
axis.text.y= element_text(size=14),
legend.title=element_text(size=14),
legend.text =element_text(size=12),
strip.text.x=element_text(size=14),
strip.text.y=element_text(size=14))