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### timing conventions

Posted: Sun Jun 11, 2017 11:57 am
Hi all,
I am running a simple model and I have two questions.

1. What is the difference between stating

A = p ; and / or A(+1) = p(+1) ;

I know one means it holds at any time, and the other hold at expectation. Beyond that what does it really mean? can I use either one if both work ?

2. The equation above expressed at (t+1) is the FIRST FOC from a maximization problem. The SECOND FOC is

A(+1) = Z(+1);

The question now is can I use the FIRST FOC hold at (t) and the SECOND FOC hold at (t+1) ?? ...as:

[1] A=p;
[2] A(+1)=Z(+1);

would I be violating any rules by doing so ?
Ps. ( The reason I do so is that using both at (t+1) in a separate context the BK conditions fail ).

### Re: timing conventions

Posted: Sun Jun 11, 2017 3:20 pm
The first one means that the equation has to hold for every state of the world, while the second one means it only has to hold on average. That is a fundamental difference. Therefore you cannot use an arbitrary timing. There is a unique correct one you need to find. It is not valid to fudge the timing until the BK conditions are satisfied. As I said, there is one unique correct timing.

### Re: timing conventions

Posted: Sun Jun 11, 2017 11:20 pm
I assumed so. thank you !